Question: Bed & Bath, a retalling company, has two departments - Hardware and Linens. The company's most recent monthiy contribution format income statement follows: A study
Bed \& Bath, a retalling company, has two departments - Hardware and Linens. The company's most recent monthiy contribution format income statement follows: A study indicates that $379,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs thve will continue A even if the Linens Department is dropped, in oddition, the stimination of the Linens Department will result in a 20% decrease in the soles of the Hardware Department. What is the financial advantage (disadvantage) of discontinuing the Linens Department? Required
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