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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 Income (1) Department Total Hardware Linen $ 4,120,000 $3,080,000 $1,040,000 1.248.000 840,000 400,000 2,672,000 2,232,000 640.000 2,320,000 1,480,000 840,000 $ $52,000 75,000 $200,000 A study indicates that $373.000 of the fixed expenses being charged to Unens 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 16% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage of discontinuing the Linens Department

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