5 Exercise 13-15 (Algo) Dropping or Retaining a Segment [LO13-2] 166 points Thalassines kataskeves, SA., 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: eBook $444,000 Print $ 139,000 51,000 11,000 Thalassines kataskeves, S.A Incone Statent-ilge Pump For the Quarter Ended March Sales Variable expenses Variable manufacturing expenses Sales comissions Shipping Total variable expenses Contribution margin Fixed expenses Advertising (for the bilge pump product line) Depreciation of equipment (no resale valve) General factory overhead Salary of product-line manager Insurance on Inventories Purchasing department Total fixed expenses Net operating loss 205,000 245,000 References 26.00 129.00 35,000 128.00 12.000 60,000 381,000 (130,000) *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