Assume a retalling 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 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 $140,000 of the fixed expenses being charged to Department Bare sunk costs or allocated costs that will continue if the segment is discontinued. However, Department B is discontinued the sales in Department A will drop by 8%. What is the financial advantage (disadvantage) of discontinuing Department B? Multiple Choice $(132.000 $136.000 56168.4001 Pro 15 Next >