Bed Bed

Bed & Bath, a retailing compary, has two departments$-$Hardware and Linens. The company's most recent monthly contribution format income statement follows:

$\backslash$table$[[,$Total,Oepartsent$],[,$Hardware,Linens$],[$Sales$,$$ $4,340,000,$$ $3,14$e$,$ eve,$ $1,20$e$,090],[$Variable expenses,$1,268,000,84,68,404,000],[$Contribution margin,$3,072,000,2,276,$ eve,$796,009],[$Fixed expenses,$2,270,000,1,450,090,820,000],[$Wet operating incene $($loss$),$$ $302,000,5826,040,1(24,004)]]$

A study indicates $$380,000$ of the fixed expenses being charged to Linens are sunk costs of allocated costs that with continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a $19\%$ decrease in the sales of the Hardware Department.

Required:

What is the financial advantage $($disadvantage$)$ of discontinuing the Linens Department?

Financial $($disadvantage$)$ I