Thalassines Kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales S 450,000...
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Thalassines Kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales S 450,000 Variable expenses: Variable manufacturing expenses Sales commissions S134,000 43,000 18,000 Shipping Total variable expenses Contribution margin Fixed expenses: 195,000 255, 000 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 22,000 113,000 35,000* 124, 000 15,000 53,000t Total fixed expenses Net operating loss 362,000 (107, 000) Common costs allocated on the basis of machine-hours tCommon costs allocated on the basis of sales dollars. 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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