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Exercise 6-17 (Algo) Dropping or Retaining a Segment [LO6-2] Bed & Bath, a retailing company, has two departments-Hardware and Linens, The company's most recent monthly

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Exercise 6-17 (Algo) Dropping or Retaining a Segment [LO6-2] Bed \& Bath, a retailing company, has two departments-Hardware and Linens, The company's most recent monthly contribution format income statement follgws: A study indicates that $371,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Deportment is dropped. In addition, the elimination of the Linens Department will result in a 18% decrease in the sales of the Hardware Department. Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department

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