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Bed & Bath, a retaling company, has two departments-Hardware and Linens. The company's most recent mionthly contr bution 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 mionthly contr bution income statement follows: A study indicates that $374,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that wili continue even if the Linens Department is dropped. In addition, the ellmination of the Linens Department will resuit in a 16\% decrease in the soles of the Hardware Department. Required: Whot is the financial advantage (disadvantage) of discontinuing the Linens Department? Bed \& Bath, a retaling company, has two departments-Hardware and Linens. The company's most recent mionthly contr bution income statement follows: A study indicates that $374,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that wili continue even if the Linens Department is dropped. In addition, the ellmination of the Linens Department will resuit in a 16\% decrease in the soles of the Hardware Department. Required: Whot is the financial advantage (disadvantage) of discontinuing the Linens Department

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