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 contribution format Income statement for the bilge pump product line follows $ 850,000 $ 330,000 42,000 18,000 Thalassines kataskeves, S.A. Income Statement-Bilge Pump For 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 390,000 460,000 es 270,000 80,000 105,000 32,000 8,000 45,000+ 540,000 $ (80,000) *Common costs allocated on the machine-hours. *Common costs allocated on ales dollars. Discontinuing the bilge pump prane would not affect sales of other products and would have no effect on the company's total general factory overhead on total Purchasing Department expenses. Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line? Financial (disadvantage)