please solve for the exact amount of financial advantage or disadvantage Bed & Bath, a retailing company,

please solve for the exact amount of financial advantage or disadvantage

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Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Department Total $ 4,310,000 Hardware $ 3,130,000 Linens $ 1,180,000- 1,322,000 2,988,000 2,230,000 909,000 2,221,000 1,430,000 413,000 767,000 800,000 $758,000 $ 791,000 $ (33,000) 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 15% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Department Total $ 4,310,000 Hardware $ 3,130,000 Linens $ 1,180,000- 1,322,000 2,988,000 2,230,000 909,000 2,221,000 1,430,000 413,000 767,000 800,000 $758,000 $ 791,000 $ (33,000) 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 15% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department?