Business, 30.07.2019 18:10, lizdeleon248
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: thalassines kataskeves, s. a. income statement—bilge pump for the quarter ended march 31 sales $ 420,000 variable expenses: variable manufacturing expenses $ 140,000 sales commissions 44,000 shipping 16,000 total variable expenses 200,000 contribution margin 220,000 fixed expenses: advertising (for the bilge pump product line) 22,000 depreciation of equipment (no resale value) 101,000 general factory overhead 34,000 * salary of product-line manager 122,000 insurance on inventories 11,000 purchasing department 44,000 † total fixed expenses 334,000 net operating loss $ (114,000 ) *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’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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Thalassines kataskeves, s. a., of greece makes marine equipment. the company has been experiencing l...
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