Assume a retailing company has two departments --Department A and Department B. The company's most recent contribution format Income state follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $800,000 320,000 480,000 400,000 $ B0,000 Department Department B $350,000 $450,000 120,000 200,000 230,000 250,000 140,000 260,000 $ 90,000 $(10,000) The company says that $140,000 of the fixed expenses being charged to Department Bare sunk costs or allocated costs that will continue If the segment is discontinued. However, if Department is discontinued the sales in Department A will drop by 11%. What is the financial advantage (disadvantage) of discontinuing Department B? Multiple Choice $1144,000) $(148,000) The company says that $140,000 of the fixed expenses being charged to Department Bare sunk costs or allocated costs that will continue If the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 11%. What is the financial advantage (disadvantage) of discontinuing Department B? Multiple Choice $(144,000) $(148,000) $(175,300) O $1155,300)