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PLEASE SHOW ALL WORK*********++++++++++++++++++++++ Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows

image text in transcribedPLEASE SHOW ALL WORK*********++++++++++++++++++++++

Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows Department Total Hardware Linens Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 4,220,000 3,030,000 $ 1,190,000 404,000 786,000 850,000 811,000 1,215,000 3,005,000 2,219,000 2,290,000 1,440,000 $ 715,000$ 779,000(64,000) A study indicates that $378,000 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 17% decrease in the sales of the Hardware Department. Requirec What is the financial advantage (disadvantage) of discontinuing the Linens Department

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