Exercise 13-17 (Algo) Dropping or Retaining a Segment [LO13-2) 17 POSS Bed & Bath, a retailing company has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: eBook Sales Variable expenses Contribution margin Fed expenses Het operating income (loss) Department Total Handiare Linens $ 4,240,000$ 3,150,000 $ 1.060,000 1,264,000 859,00 405,000 2,976,000 2,321,000 655,000 2.150.000 1,360.000 520,000 5 796,000 $ 961,00 $ (165.600) Pent References A study indice that $375,000 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 elimination of the Linens Department will result in a 12% decrease in the sales of the Hardware Department. Required: What is the financial advantage (disadvantage of discontinuing the Linens Department