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 $340,000 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 10% decrease in the sales of the Hardware Department. Required: 1. The company used the above information to calculate the financial impact of dropping the Linens Departmerjt. it depicted its financial analysis using the data visualization shown below. Your task is to review this visualization and answer the following questions: What if We Drop Linens? Description 5500,000 CM Lost: Linens Avoided Fix Costs CM Lost Hardware Financial Disadvantage What if We Drop Linens? $500,000 $100,000 \begin{tabular}{l|l|l|} ($100,000) & 0 \\ & ($210,000) \\ ($200,000) \end{tabular} ($400,000) ($500,000) (5600,000) ($600,000) a. The relevant fixed cost in the decision to discontinue the Linens Department is: $340,000 $460,000 $800,000. $600,000. b. The total foregone contribution margin associated with dropping the Linens Department is: $(810,000) $(600,000) $(210,000) $(350,000) c. Which of the following statements is true? Discontinuing the Linens Department provides a financial advantage of $150,000. Discontinuing the Linens Department provides a financial (disadvantage) of $(150,000). Discontinuing the Linens Department provides a financial advantage of $350,000. Discontinuing the Linens Department provides a financial (disadvantage) of $(350,000)