Exercise 9-3 Deciding Whether to Drop or Retain a Segment (L01 - CC3) Thalassines kataskeves, SA, of Greece, makes marine equipment. The company has been experiencing losses on its bilde pump product line for several years. The most recent quarterly income statement for the bilge pump product line follows TALASSINES KATASKEVES, S.A. Income Statement Puw For the Ouarter Ended March 31 Sales Lesst Variable expenses 950, Variable manufacturing expenses 340.000 Sales commissions 46,000 Shipping 16.000 Total variable expenses 400,000 Contribution margin 550.000 Lesst Fixed expenses : Advertising 290,000 Depreciation of equipment (no resale value) 90,00 General factory overhead 115,000 Salary of product-line manager 38,000 Insurance on inventories 18,000 65.000 Purchasing department expenses Total fixed expenses 616,000 (66,000) Net operating loss Common costs allocated on the basis of machine-hours Comman costs allocated on the basis of machine hours Common costs allocated on the basis of sales dollars The currency in Greece is the euro, denoted by the discontinuance of the bilge pump product line would not affect sales of other product lines and would have no noticeable effect on the company's total general factory overhead of total purchasing department expenses Required: Compute the net advantage or disadvantage if the billige pump product line be discontinued? (Negative amount should be indicated by a minus sign.) Net advantage (disadvantage of dropping the ne Should the bilge pump product line be discontinued? Yes NO