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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 Total Linens Sales

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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 Total Linens Sales Variable expenses $4,120,000 $3,110,000 $1,010,000 344,000 925,000 419,000 Contribution margin Fixed expenses 2,776,000 2.185,000 591,000 2,320,000 1,480,000 840,000 Net operating income (loss) 456,000 705,000 (249,000) A study indicates that $377,000 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 18% decrease in the sales of the Hardware Department. Required If the Linens Department is dropped, what will be the effect on the net operating income of the company as a whole? net

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