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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 Sales Variable expenses Contribution

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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 Sales Variable expenses Contribution margin Fixed expenses Net operating incoer (loss) Department Total Hardware Linens $ 4,150,000 $3,050,000 $ 1,100,000 1,250,00 145,000 407.000 2.000.000 2.207.000 693,000 2.220.000 1,420,000 000.000 5 650,000 $ 717,000 (107,000) A Study indicates that $372,000 of the foed 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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