12-2A Drop 0r Retain 3 Segment All-Mart is a department store with three major departments: Housewares, Hardware, and Electronics. Company management is very concerned about the performance of the electronics department, noting that it seems to be a drag on the company based on its most recent scal quarter. A company-wide segmented income statement follows: Housewares Hardware Electronics Total Sales $150,000 $220,000 $200,000 $570,000 Variable expenses 60,000 100,000 140,000 300,000 Contribution margin 90,000 120,000 60,000 270,000 Fixed expenses 50,000 100,000 90,000 240,000 Operating income (loss) $40,000 $20,000 $80,000] $30,000 The company notes that if the electronics department were dropped, the other departments could expect a 10% decrease in foot trafc and sales. Also, $20,000 of the electronics department's xed costs are allocated and would continue even if the department was dropped. The company has no planned use for the space currently used by the electronics department. Required Compute the net dollar advantage or disadvantage of dropping the electronics department