3 375 Check my work Exercise 13-17 (Algo) Dropping or Retaining a Segment [LO13-2] Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: points Sales Variable expenses Contribution margin Fixed expenses AUK Net operating incone (loss) Port Total $ 4,170,000 1,235,000 2,935,000 2,200,000 $735,000 Department Hardware $3,070,000 829,000 2,241,000 1,350,000 $891,000 Linens $ 1,100,000 406,000 694,000 850,000 $ (156,000) A study indicates that $374,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 19% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? Financial (disadvantage Mc