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Bed & Bath, a retailing company, has two departments-Hardware and Linens. The companys. most recent monthly contribution form income statement follows: A study indicates that

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Bed \& Bath, a retailing company, has two departments-Hardware and Linens. The companys. most recent monthly contribution form income statement follows: A study indicates that $376,000 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 Unens Department will resuit in a 14% decrease in the sales of the Hardware Department Required: What is the financlal advantage (disadvantage) of discontinuing the Linens Department? Bed \& Bath, a retailing company, has two departments-Hardware and Linens. The companys. most recent monthly contribution form income statement follows: A study indicates that $376,000 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 Unens Department will resuit in a 14% decrease in the sales of the Hardware Department Required: What is the financlal advantage (disadvantage) of discontinuing the Linens Department

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