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Bed & Bath, a retailing company has two departments - Hardware and Linens. The company's most recent monthly contribution format Income statement follows: Department Hardware

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Bed & Bath, a retailing company has two departments - Hardware and Linens. The company's most recent monthly contribution format Income statement follows: Department Hardware Lines $ 3,120,000 $1,160,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income (less) Total $ 4,280,000 172.000 2,305,000 2,200,000 200.000 2,157,000 1,350.000 751.000 520.000 30.000 A study indicates that $379,000 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 Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department

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