Homework chapter 6 part 1 Save Help Saveta Submit 4 2 points Book Check my won Thalassines kataskeves, SA 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 follow Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales $ 490,000 Variable expenses Variable manufacturing expenses $ 127,000 Sales comissions 40,000 Shipping 19.000 Total variable expenses 186,000 Contribution margin 304,00 Fixed expenses: Advertising (for the bilge pump product line) 28,000 Depreciation of equipment (no resale value) 116.000 General factory overhead 36,000 110,000 Salary of product-line manager Insurance on inventories 10,000 Purchasing department 343,00 Total fixed expenses $ (39,000) Net operating loss Pro References 43,000 *Common costs allocated on the basis of machine-hours +MAR PA SASA hari ni dalla Help Save & Exit 5 Check my 4 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 116,00 36,000 110, eae 10.ece 43,000+ 2 points 343.000 $ (39,000) BOOK Print References "Common costs allocated on the basis of machine-hours Common costs allocated on the basis of sales dollars Discontinuing the bige 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