question 2

Exercise 13-15 (Algo) Dropping or Retaining a Segment [LO13-2] Thalassines Kataskeves, 5. A, of Greece makes marine equipment. The company has been experiencing losses on its bilpe pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump follows: ACommon costs allocated on the basis of machine-hours tCommon cosis allocated on the basis of sales dollars Discontinuing the bilge pump would not affect sales of other product lines and would have no effect on the compary's total generai factory overhead or totai Purchasing Department expenses. Required: What is the financial odvantage (disadvantage) of discontinuing the bilge pump