Chapter 13 - Homework 3 - Algorithmic a Saved Help Save & Exit Submit Check my work 2 Exercise 13-15 (Algo) Dropping or Retaining a Segment (LO13-2] 30 points 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: X 03:30:09 Skipped $ 460,000 $ 139,000 40,000 14,000 eBook Thalassinen kataskeves, S.A. Income Statement-Bilge Pump Por the Quarter Ended March 31 Sales Variable expenses Variable manufacturing expenses Sales commissions Shipping 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 193,000 267,000 Print 24,000 115,000 39,000* 120,000 10,000 59.000t 367,000 $(100,000) References *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