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Bed & Bath, a retailing company, has two departmentsHardware and Linens. The company's most recent monthly contribution format income statement follows: Bed & Bath, a

Bed & Bath, a retailing company, has two departmentsHardware and Linens. The company's most recent monthly contribution format income statement follows:

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Bed & Bath, a retailing company, has two departmentsHardware and Linens. The company's most recent monthly contribution format income statement follows: Depart-ent Total Hardware Linens Sales $ 4,686,666 $ 3,949,999 $ 1,949,999 Variable expenses 1,313,666 916,666 463,666 Contribution margin 2, 767,666 2,136,666 637,666 Fixed expenses 2,246,666 1,396,666 856,666 Net operating income (loss) $ 527,339 $ 74-91393 $ (213)939) A study indicates that $374,000 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 a18% decrease in the sales of the Hardware Department. Required: What is the nancial advantage (disadvantage) of discontinuing the Linens Department? l:l:l

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