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Thalassines kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on...

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Accounting

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Thalassines kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format Income statement for the bilge pump product line follows: Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales $ 480,000 Variable expenses: Variable manufacturing expenses $ 120, eee Sales commissions 49,00 Shipping 19, eee Total variable expenses 188,888 Contribution margin 292,000 Fixed expenses: Advertising (for the bilge pump product line) 22,000 Depreciation of equipment (no resale value) 107,000 General factory overhead 44,000 Salary of product-line manager 127, wee Insurance on inventories 1e, wee Purchasing department 59, eeet Total fixed expenses 369,000 Net operating loss $ (77,600) *Common costs allocated on the basis of machine-hours. Common costs allocated on the basis of sales dollars. Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company's total general factory overhead or total Purchasing Department expenses. Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line

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