11.Subject:- Accounting Thalassines Kataskeves, SA, of Greece makes marine equipment. The company has been experiencing losses on its bilge pumpproduct line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows:SalesVariable expensesVariable manufacturing expensesSales comissionsShippingTotal variable expensesContribution marginThalassines Kataskeves, S.A.Income Statement-611ge PumpFor the Quarter Ended, March 31Fived expenses:Advertising (for the hilge pump product line)Depreciation of equipment (no resale value)General factory overheadSalary of product line managerInsurance on InventoriesPurchasing departmentTural fixed aupances$ 126,00045,00024,00024,000112,00040,000115,00044,000$500,000195,000105,000343,000$ (37,000)"Common costs allocated on the basis of machine-hours1Common costs allocated on the basis of sales dollarsDiscontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company's *Common costs allocated on the basis of machine-hours.*Common 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'stotal general factory overhead or total Purchasing Department expensesRequired:What is the financial advantage (disadvantage) of discontinuing the bilge pump product line?

Even if a product ceases to exist, there may be depreciation, contractual commitments, and other…

Thalassines Kataskeves, S.A, 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 follows: Sales Variable expenses variable manufacturing expenses Sales comissions Shipping Total variable expenses Contribution margin Thalassines Ketaskeves, S.A. Income Statement-611ge Pump be the Quarter Ended March 31 Fixed expenses Advertising (for the bilge pump product Itne) Depreciation of equipment (no resale value) General factory overhead Salary of product line manager Insurance on Inventories Purchasing department Tutal fled expances Net operating loss "Common costs allocated on the basis of machine-hours 1Common costs allocated on the basis of sales dollars $ 126,000 45,000 24,000 24,000 112,000 40,000 115,000 1,000 44,000 $ 500,000 195,000 105,000 341,000 Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company's attnat Purchasma Panartment mennes total neneral tarton