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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: Departnent Total ardware Sales

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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: Departnent Total ardware Sales Variable expenses Contribution nargin Fixed expenses Net operating income (loss) f 4,240,000 3,110,000 f 1,130,000 409,000 3,008,000 2,287,000 721,000 900,000 1,232,000 823,000 718,000; 897,000 (179,000) 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 a 18% decrease in the sales of the Hardware Department Required What is the financial advantage (disadvantage) of discontinuing the Linens Department

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