EXERCISE $10-15$ Dropping or Retaining a Segment $[$LOI$0-2]$

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:

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:

Would you recommend that the bilge pump product line be discontinued? Support your answer with appro$-$

priate computations.