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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: Sales Variable expenses

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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: Sales Variable expenses Contribution margin Tixed expenses Net operating income (los) Total $ 4,270,000 1,218,000 3,052,000 2.100,000 $ 752,000 Department Hardware Linens $ 3,080,000 $ 1,190,000 814,000 404,000 2,266,000 786,000 1,470,000 830,000 5.796,000 6 (44,000) ces A study indicates that $379,000 of the fixed expenses being charged to Linens are sunk costs or alocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 14% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage of discontinuing the Linens Department? Financial (disadvantage)

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