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Baits Home Center, a retailing company, has two departments, Bath and Kitchen. The company's most recent monthly contribution format income statement follows: A study indicates

image text in transcribed Baits Home Center, a retailing company, has two departments, Bath and Kitchen. The company's most recent monthly contribution format income statement follows: A study indicates that $370,000 of fixed expenses being charged to the Bath Department are sunk costs or allocated costs that will continue even if the Bath Department is dropped. In addition, the elimination of the Bath Department would result in a 10% decrease in the CM of the Kitchen Department. If the Bath Department is dropped, what will be the effect on the NOI of the company as a whole? Show and label your computations. Baits Home Center, a retailing company, has two departments, Bath and Kitchen. The company's most recent monthly contribution format income statement follows: A study indicates that $370,000 of fixed expenses being charged to the Bath Department are sunk costs or allocated costs that will continue even if the Bath Department is dropped. In addition, the elimination of the Bath Department would result in a 10% decrease in the CM of the Kitchen Department. If the Bath Department is dropped, what will be the effect on the NOI of the company as a whole? Show and label your computations

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