Exercise $13-15($Algo$)$ Dropping or Retaining a Segment $[$LO$13-2]$

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:

$\backslash$table$[[\backslash$table$[[$Thalassines Kataskeves, S$.$A$.],[$Income Statement$-$Bilge Pump$],[$For the Quarter Ended March $31]],,,],[$Sales$,,,460,000],[$Variable expenses:,,,$],[$Variable manufacturing expenses,$$129,000,,],[$Sales commissions,$45,000,,],[$Shipping$,12,600,,],[$Total variable expenses,,,$186,000],[$Contribution margin,,,$274,000],[$Fixed expenses:,,,$],[$Advertising $($for the bilge pump product line$),\backslash$table$[[23,000],[106,000]],,],[\backslash$table$[[$Depreciation of equipment $($no resale value$)],[$General factorv overhead.$]],41,{000}^{**},,],[\backslash$table$[[$General tactory overhead$],[$Salary of product$-$line manager$]],114,000,,],[$Insurance on inventories,$15,000,,],[$Purchasing department,$43,{000}^{+},,],[$Total fixed expenses,$\frac{?}{\text{b}\text{a}\text{r}}(T),,342,000],[$Net operating loss,,$$,(68,000)$