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Bed & Bath, a retaling company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: A study indicates that

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Bed \& Bath, a retaling company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: A study indicates that $375,000 of the fixed expenses being charged to Linens are sunk costs or alfocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department wili result in a 12\% decrease in the sales of the Hardware Department. Requlred: What is the financial advantage (disadvantage) of discontinuing the Linens Department

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