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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

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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 Wet operating Income (loss) Department Total Hardware Linens $ 4,180,000 $3,128,690 5 1,060,000 1,335,000 931.000 404,000 2,845,800 2,189,000 656,000 2,320,000 1,430,000 890,000 525,000 $ 759,000 (234,000) A study indicates that $378,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is cropped. In addition, the elimination of the Linens Department will result in a 20% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage of discontinuing the Linens Department

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