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value: 10.00 points Bed & Bath, a retailing company, has two departments Hardware and Linens. The company's most recent monthly contribution format income statement follows:

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value: 10.00 points Bed & Bath, a retailing company, has two departments Hardware and Linens. The company's most recent monthly contribution format income statement follows: TotalHardware Linens Sales Variable expenses S4,260,000 $3,100,000 $ 1.160,000 1,329,000 922,000 407,000 Contribution margin Fixed expenses 2,931,000 2,178,000 753,000 2,160,000 1,300,000 860,000 Net operating income (loss) 771,000 $ 878,000 S (107,000) A study indicates that $376,000 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 14% decrease in the sales of the Hardware Department

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