Thalassines Kataskeves, S.A Income Statement-Bilge Pump For the Quarter Ended March 31 480, eee Sales...
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Thalassines Kataskeves, S.A Income Statement-Bilge Pump For the Quarter Ended March 31 480, eee Sales Variable expenses: Variable manufacturing expenses $ 122,eee Sales commissions 48,eee Shipping Total variable expenses 17,eee 187,eee Contribution margin 293,eee Fixed expenses: Advertising (for the bilge pump product line) Depreciation of equipment (no resale value) 25,eee 118,eee 42,eee General factory overhead Salary of product-line manager 129,eee Insurance on inventories 11,eee 40, et Purchasing department Total fixed expenses 365, eee (72,eee) Net operating loss Common costs allocated on the basls of machine-hours. tCommon costs allocated on the basls of sales dollars. DIscontinulng the blge 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 (dlsadvantage) of discontinuing the bilge pump product line
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