Ch. 13: Homework Saved Help Save & Exit Submit Check my work 5 Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: 6 6 points Sales Variable expenses Contribution margin Fixed expenses Department Total Hardware Linens $ 4,130,000 $3,120,000 $ 1,010,000 1,355,000 936,000 419,000 2,775,000 2,184,000 591,000 2,320,000 1,420,000 900,000 S 455,000 $ 764,00D $ (309,000) eBook Net operating income (logs) Print A study indicates that $373,000 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? Financial (disadvantage)