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3 Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution income statement follows: 10 points Sales Variable

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3 Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution income statement follows: 10 points Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Department Total Hardware Linens $ 4,240,000 $3,200,000 $1,040,000 1,334,000 914,000 420,000 2,906,000 2,286,000 620,000 2,200,000 1,360,000 840,000 $ 706,000 $ 926,000 $ (220,000) eBook Print A study indicates that $373,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continu even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 19% decrease in th sales of the Hardware Department. References Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? Financial (disadvantage) L

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