Bed & Bath, a retailing company. has two department Hardware and Linens The company's most meant monthly contribution format Income statement follows A study indicates that $376 000 of the fixed expenses being charged to Linens are sunk costs Of allocated costs that will continue even if the Linens Department is dropped In addition the elimination of the Linens Department will result in a 20% decrease in the sales of the Hardware Department. If the Linens Department is dropped what will be the effect on the net operating income of the company as a whole