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Bucky's Home Center has two company follows: departments, Bath and Kitchen. The most recent income statement for the Bath $1,000,000 Total Kitchen Sales Variable Costs

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Bucky's Home Center has two company follows: departments, Bath and Kitchen. The most recent income statement for the Bath $1,000,000 Total Kitchen Sales Variable Costs Contribution Margin Fixed Expenses 4,000,000 1,600,000 2,400,000 $5,000,000 1,900,000 300,000 700,000 900,0001800,000 2,700,000 00,000 Net Operating income/ (loss) $(200,000) | $ 600,000 A study indicates that $370,000 of the fixed expenses being charged to the Bath Department are sunk costs or allocated costs that will continue even if the Bath Department is dropped. In addition, the elimination of the Bath Department would result in a 10% decrease in the sales of the Kitchen Department. Eliminating the Bath Division will result in a revised Total Net Operating Income/ (loss) of $

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