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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: 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 follows: A study Indicates that $374,000 of the fixed expenses beIng charged to Linens are sunk costs or allocated costs that will contInue even If the Linens Department is dropped. In addition, the ellmination of the Linens Department will result in a 16% decrease In the sales of the Hardware Department. Required: What Is the financlal advantage (disadvantage) of discontInulng the LInens Department? Bed \& Bath, a retalling company, has two departments-Hardware and LInens. The company's most recent monthly contribution format Income statement follows: A study Indicates that $374,000 of the fixed expenses beIng charged to Linens are sunk costs or allocated costs that will contInue even If the Linens Department is dropped. In addition, the ellmination of the Linens Department will result in a 16% decrease In the sales of the Hardware Department. Required: What Is the financlal advantage (disadvantage) of discontInulng the LInens Department

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