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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: Department Hardware Linens 000

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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: Department Hardware Linens 000 $3,060,000 $1,120,000 878,00011409,000 711.000 Variable expenses Contribution margin Pixed expenses Net operating income A study indicates that $372,000 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 20% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department

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