90YGTREW 153) pe.. gv cf51 M Gmail YouTube Maps G News Translate Capstone Project: (.. HW Chpt 11 i Saved Help Save & Exit Su Check my wo 4 Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: 10 Department points Total Hardware Linens Sales $ 4, 140, 000 $ 3,000, 060 $ 1, 140, 000 Skipped Variable expenses 1, 300, 090 898, 000 402, 000 Contribution margin 2, 840, 009 2, 102,000 738, 000 Fixed expenses 2, 330, 090 1, 480, 000 850, 006 Net operating income (loss) $ 510, 000 622, 000 $ (112, 000) eBook Print 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 20% decrease in the References sales of the Hardware Department. Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? Mc Graw 4 of 4 Next > Hill previous 60 F Clear Q Search ~ ENG