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pls help, cant get right number. Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution farmat income
pls help, cant get right number.
Bed \& Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution farmat income statement follows: A study Indicates that $372,000 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 Deparment will result in a 13% decrease in the sales of the Hardware Department Required: What is the total financial impact of discontinuing the Linens Department? (See below if you need a hint) Hints: (1) Remember that if sales diop in the Hordware department, this wil impact both sales revenue and varioble costs, (2) in regaid to the fixed costs in the Linens Dept, remember that you need to account for what can be saved (fe, what changes) in your analysis. not what remains: (3) Example 11 .2b is a similar Step by Step Solution
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