C Gmail ACC1200 901 Fall 2022 ManagX Question 7 - QUIZ CH 13 - Con X Dashboard ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/q... My Drive - Google... YouTube Maps Canvas QUIZ CH 13 i Saved Help Save & Exit Submit 7 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 7.16 points For the Quarter Ended March 31 Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping eBook References Total variable expenses Contribution margin Fixed expenses: 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. $ 500,000 $ 140,000 40,000 17,000 197,000 303,000 26,000 115,000 38,000* 112,000 13,000 47,000+ 351,000 $ (48,000) 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? Mc Graw Hill < Prev 7 of 7 Next > Check my work Other Bookmarks