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Bed & Bath, a retalling company, has two departments-Hardware and Linens. The company's most recent monthly contribution forma income statement follows: 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 forma income statement follows: A study indicates that $371,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs t| vill 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 total financial impact of discontinuing the Linens Department? (See below if you need a hint)

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