Question: Bed &. Bath, a retalling compony, hns two deportments-Hardware and Linens, The companys most recent monthly contribution format income statement follows: A study indicates that
Bed \&. Bath, a retalling compony, hns two deportments-Hardware and Linens, The companys most recent monthly contribution format income statement follows: A study indicates that $373,000 of the fixed expenses being clarged to Linens are sunk costs or allocated cosis that will continue even if the Linens Deportment is dropped In addition, the elimination of the Linens Department will result in a 14% decrease in the saies of the Hordware Department. Required: What is the financial odvantage (disadvantage) of discontinuing the Linens Department
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