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

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.

Bed 8: Bath, a retailing company, has two departmentsHardware and Linens. The company's most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales 35 4,886,868 $ 3,886,868 $ 1,886,868 Variable expenses 1,386,866 986,666 486,866 Contribution margin 2,766,666 2,166,666 666,666 Fixed expenses 2,268,666 1,468,666 866,666 Net operating income (loss) $ 566,666 $ 766,666 $ (266,666) ' A study indicates that $340,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even ifthe 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: What is the financial advantage (disadvantage) of discontinuing the Linens Department