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Bed & Bath, a retalling company, has two departments - Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable

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Bed & Bath, a retalling 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 Department Total Hardware Linens 54,200,000 $3,110,000 $1,000,000 1,283,000 879,600 404,000 2,917,000 2,231,00 686,000 2.250.000 1.410,000 840,000 $ 667.000 $ 121,000 $ 1154.0001 -Book Net operating Income (los) A study indicates that $373,000 of the foxed 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 19% decrease in the sales of the Hardware Department. Required: What is the financial advantage (disadvantage) of discontinuing the Liners Department

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