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Bed 8 Bath, a reteiling company. has two departments-Hardware and Linens. The compsnys mort recent monthly contribution format income statement follows: A study indicates that

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Bed 8 Bath, a reteiling company. has two departments-Hardware and Linens. The compsnys mort recent monthly contribution format income statement follows: A study indicates that $378,000 of the fiwed experses being charged to tinens are sunk costs or atiocated costs that will cortinue even it the Linens Deportment is dropped. in addition, the elimination of the Livens Departisent wall result in a for decrease in they sales of the Hardware Degorynent Required: What is the firancial advantage (diatavantage) of oiscomtimung the Linens Depsement? A study indicates that $378,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 18% decrease in the sales of the Hardware Department Required: What is the tinanciai advantage (disadvantage) of discontinuing the Linens Department

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