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5 Check my work Exercise 11-17 Dropping or Retaining a Segment (L011-2] Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's

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5 Check my work Exercise 11-17 Dropping or Retaining a Segment (L011-2] Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: 1 points ebook Sales Variable expenses Contribution margin Fixed expenses Net operating income (los) Department motal Hardware nene 4,030,000 $3,000,000 $1.030,000 1, 269,000 852.000 417.000 2,761,000 2,148,000 613,000 2,250,000 1.030,000 $30,000 $ 501,00 718,000 (217,000) References 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 12% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage of discontinuing the Linens Department

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