$ 490,000 $ 132,000 47,000 21,000 200,000 290,000 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 *Common costs allocated on the basis of machine-hours. Common costs allocated on the basis of sales dollars. 30,000 105,000 46,000* 122,000 14,000 42,000+ 359,000 $ (69,000) 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
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