Assume a retailing company has two departments Department A and Department B. The company's most recent contribution format income statement follows: Total Department B Sales $ 800,000 Department A $ 350,000 120,000 230,000 $ 450,000 200,000 Variable expenses Contribution margin Fixed expenses 250,000 320,000 480,000 400,000 $ 80,000 140,000 260,000 Net operating income (loss) $ 90,000 $ (10,000) The company says that $130,000 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 8%. What the financial advantage (disadvantage) of discontinuing Department B? expenses being charged to Department discontinued. However, if Department B is discontinued the sales in Department A will Department B? Multiple Choice O O O $(132,000) $(136,000) $(138,400) $(158,400)