Exercise 11-15 Dropping or Retaining a Segment [LO11-2] 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 cor Incom Statement-gilge P For the Quarter Ended March 31 Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping 133,000 49,000 15,000 Total variable expenses Contribution margin Fixed expenses: 253,000 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 22,000 117,000 37,000 123,000 Total fixed expenses Net operating loss s (106,000) Depreciation of equipment (no resale value) 117,000 37,009 123,000 7,800 General factoty overhead Salary of product-line manager Insurance on inventories Purchasing department Total fixed expenses Net operating loss s (106,000) Common costs allocated on the basis of machine hours. tCommon 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 e total general factory overhead or total Purchasing Department expenses Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line? inancial advantage