Tooth and Nail, a retailing company, has two departmentsHardware and Dental products. The companys most recent monthly contribution format income statement follows:

	Total	Department
Hardware	Dental
Sales	$ 4,020,000	$ 3,000,000	$ 1,020,000
Variable expenses	1,251,000	833,000	418,000
Contribution margin	2,769,000	2,167,000	602,000
Fixed expenses	2,170,000	1,350,000	820,000
Net operating income (loss)	$ 599,000	$ 817,000	$ (218,000)

A study indicates that $373,000 of the fixed expenses being charged to Dental are sunk costs or allocated costs that will continue even if the Dentist Department is dropped. In addition, the elimination of the Dental Department will result in a 12% decrease in the sales of the Hardware Department.

Required:

What is the financial advantage (disadvantage) of discontinuing the Dental Department?

Tooth and Nail, contribution for tailing company, has two departments - Hardware and Dental producte The come statement follows: A study indicates that $373,000 of the fixed expenses being charged to Dental are sunk costs or allocated cossts th even if the Dentist Department is dropped. In addition, the elimination of the Dental Department will resuti in a 125 sales of the Hardware Department. Required: What is the financial advantage (disadvantage) of discontinuing the Dental Department