Exercise 12.15 Dropping or Retaining a Segment (L012-2] 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: Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended Harch 31 Salus 5 420,000 Variable expenses: Variable manufacturing expenses $ 125, eee Sales commissions 49,000 Shipping 11,000 Total variable expenses 185,000 Contribution margin 235, eee Fixed expenses Advertising (for the bilge pump product line) 26,000 Depreciation of equipment (no resale value) 111,00 General factory overhead 36,000 Salary of product-line manager 113,000 Insurance on inventories 13,000 Purchasing department 50,000 Total fixed expenses 349,000 Het operating loss (114,000) *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