i Saved Help Save & Exit Assume a retailing company has two departments-Department A and Department B. The company's most recent contribution format income statement follows: Department Department Total A B Sales $ 800, 000 $ 350, 000 $ 450, 000 Variable expenses 320, 000 120, 000 200, 000 Contribution margin 480, 000 230, 000 250, 000 Fixed expenses 400, 000 140, 000 260, 000 Net operating income (loss) $ 80, 000 $ 90, 000 $ (10, 000) The company says that $140,000 of the fixed expenses being charged to Department B are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 10%. What is the financial advantage (disadvantage) of discontinuing Department B? Multiple Choice