5 1.66 points Exercise 13-15 (Algo) Dropping or Retaining a Segment [LO13-2] 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 311 eBook Sales $ 400,000 Variable expenses 10 Variable manufacturing expenses Sales commissions i $ 126,000 40,000 Shipping 23,000 Print Total variable expenses Contribution margin 189,000 291,000 Fixed expenses 24,000 References 119,000 49,000* 124,000 9,000 43,000 368,000 $ (77,000) Advertising (for the bilge pump product line) Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on Inventories Purchasing department Total fixed expenses Net operating loss "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