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isio Making (30 poin Tracey's Home Center, a retailing company, has two departments, Bath and Kitchen. recent monthly contribution format income statement for the company
isio Making (30 poin Tracey's Home Center, a retailing company, has two departments, Bath and Kitchen. recent monthly contribution format income statement for the company follows: A Total S5,000,000 1900000002,400,000 3,100,000 2.700,000 Bath Kitchen 1,600,000 1,800,000 Sales Less variable expenses Contribution margin Less fixed expenses Net operating income (loss) $1,000,000 $4,000,000 300,000 900,000 S400,000 ($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 will result in a 10% decrease in the sales of the Kitchen Department. Required If the Bath Department is dropped, what will be the effect on the net operating income of the company as a whole
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