Assume a retailing company has two departments Department A and Department B. The company's most recent contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $800,000 320,000 480,000 400,000 $ 80,000 Department A $350,000 120,000 230,000 140,000 $ 90,000 Department B $ 450,000 200,000 250,000 260,000 $ (10,000) The company says that $110,000 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 5%. What is the financial advantage (disadvantage) of discontinuing Department B? Multiple Choice $(120,000) $(124,000)