Assume a retailing company has two departments$-$Department A and Department B$.$ The company's most recent contribution format income statement

follows:

The company says that $$140,000$ of the fixed expenses being charged to Department $B$ are sunk costs or allocated costs that will continue if the segment

is discontinued. However, if Department $B$ is discontinued the sales in Department A will drop by $7\%.$

What is the financial advantage $($disadvantage$)$ of discontinuing Department B$?$

Multiple Choice

$$(128,000)$

$$(132,000)$

$$(166,100)$

$$(146,100)$