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 Department B $350,000 $450,000 120,000 200,000 230,000 250,000 140,000 260,000 $ 90,000 $(10,000) The company says that $130,000 of the fixed expenses being charged to Department Bare sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department is discontinued the sales in Department A will drop by 8%. What is the financial advantage (disadvantage) of discontinuing Department B? Fixed expenses Net operating income (loss) 45 400,000 $ 80,000 The company says that $130,000 of the fixed expenses being charge segment is discontinued. However, if Department B is discontinued th (disadvantage) of discontinuing Department B? 2 points 01:25:37 Multiple Choice $(158,400) O $(138,400) O $(132,000) $(236,000) Me Graw