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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: Salon 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: Salon Variable expenses Contribution margin Fixed expenses Not operating incone (10) Department Total Hardware Tinens $ 4,220,000 $3,180,000 $1,040,000 1,316,000 904,000 412,000 2,904,000 2,276,000 628,000 2.220,000 1,410,000 810,000 $ 684,000 $ 866,000 $ (182,000) A study indicates that $372,000 of the fixed expenses being charged to Linens ale 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 19% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? Answer is not complete. Financial (disadvantage)

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