Bed and Bath a retailing company has two departments hardware and linen's. The company's most recent monthly contribution format income statement follows

Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: 10 points Total $ 4,270,000 1,386,000 2,884,000 2,330,000 $ 554,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Department Hardware $ 3,130,000 971,000 2,159,000 1,460,000 $ 699,000 Linens $ 1,140,000 415,000 725,000 870,000 $ (145,000) eBook Print References A study indicates that $380,000 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 16% decrease in the sales of the Hardware Department. red: What is the financial advantage (disadvantage) of discontinuing the Linens Department