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View previous attempt 6 Bed & Bath, a retailing company has two departments --Hardware and Linens. The company's most recent monthly contribution format income statement
View previous attempt 6 Bed & Bath, a retailing company has two departments --Hardware and Linens. The company's most recent monthly contribution format income statement follows: 1 points Door Athe Department Total Hardware Linen Sales $4,070,000 $ 3,050,000 51.020,000 Variable expenses 1,277.000 622.000 405,000 Contribution margin 2,793,000 2,178,000 615,000 Fixed expenses 2,170.000 1,340,000 830,000 Net operating income (los) $ 623,000 $ 838.000 5 215,000) A Study indicates that $377,000 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 12% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? Print rences Financial (disadvantago) Mc Graw
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