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

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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 income statement for the bilge pump product line follows:

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The currency in Greece is the euro, denoted by ?. The discontinuance of the bilge pump product line would not affect sales of other product lines and would have no noticeable effect on the company?s total general factory overhead or total purchasing department expenses.

Required:

Would you recommend that the bilge pump product line be discontinued? Support your answer with appropriate computations.

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Related Book For  book-img-for-question

Introduction to Managerial Accounting

ISBN: 978-1259105708

5th Canadian edition

Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

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