Question: A study indicates $ 3 7 3 , 0 0 0 of the fowd expenses being charged to Linens are sunk costs or allocated costs

A study indicates $

373, 000

of the fowd expenses being charged to Linens are sunk costs or allocated costs that will continue even if the thans Deparmerr is dropprd In adtition, the ctiminglon of the thens Deperment wall resulh in a

14 %

decreace in the sales of the Hardware Department.

Alequired:

What is the fiasanciel advantage

(

drsadvastage

)

of discontinuing the Linens Department?

A study indicates $ 3 7 3 , 0 0 0 of the fowd

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