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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 foliows: A study indicates that

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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 foliows: A study indicates that $376,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that wiil continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will resuit 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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