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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: A study indicotes that

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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: A study indicotes that $377,000 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 saies of the Hardware Department. Required: What is the financlal advantage (disadvantage) of discontinuing the Linens Department

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