Question: BONUS HOMEWORK i 5 10 points Saved Help Save & Exit Check m Bed & Bath, a retailing company, has two departments-Hardware and Linens. The

BONUS HOMEWORK i 5 10 points Saved Help Save & Exit Check m 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 eBook Net operating income (loss) Print Department Total $ 4,040,000 1,208,000 2,832,000 2,240,000 Hardware $ 3,010,000 808,000 2,202,000 1,370,000 Linens $ 1,030,000 400,000 630,000 870,000 $ 592,000 $ 832,000 $ (240,000) 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 13% decrease in the sales of the Hardware Department. References Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department

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