That answer is wrong***

Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly ontribution format income statement follows: Department Total Hardware Linens Sales $ 4,27e,000 $ 3,110,000 $ 1,166,000 Variable expenses 1,403,000 992,90e 411,006e Contribution margin 2,867,000 2,118,000 749,008 Fixed expenses 2,300,000 1,440,000 860,80e $ 567,000 $ 678,e00 (111,000) Net operating income (loss) A study indicates that $375,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs hat will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 15% decrease in the sales of the Hardware Department. equired What is the financial advantage (disadvantage) of discontinuing the Linens Department? Financial (disadvantage) 14,700