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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: A study indicates that

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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: 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 Dopartment will resuit in a 16% decrease in the sales of tho Hardware Department. Required: What is the financial advantege (disadvantage) of discontinuing tho Linens Departinent

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