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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: Linens Sales Variable
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement follows: Linens Sales Variable expenses Hardware $4,160,000 $3,040,000 $1,120,000 1,322,000 916,000 406,000 Contribution margin Fixed expenses 2,838,000 2,124,000 714,000 2,220,000 1,390,000 830,000 Net operating income (loss) S 618,000 S 734,000 $ (116,000) A study indicates that $380,000 of the fixed expenses being charged to Linens are sunk costs or allocated Required: a whole? in net operating income
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