Check my work 15 Bed & Bath, a retalling company, has two departments---Hardware and Linens. The company's most recent monthly contribution format Income statement follows: 0.76 Sales Variable expenses Contribution margin Fixed expenses Net operating income (less) Department Total Hardware Lines $ 4,920,000 $1,100,000 $. 2.110.000 1,294.000 188,000 406,000 2,916,000 2,192,000 724,000 2,210,000 1,320,000 10,000 700,000 $ 172,000 % 166,000) A study indicates that $373.000 of the fixed expenses being charged to Linens are sunk costo or allocated costs that will continue even if the Linens Department is dropped. In addition the eilmination of the Linens Department will result in a 20% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage of discontinuing the Linens Department