Question: Check my work 3 Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows:

 Check my work 3 Bed & Bath, a retailing company, has

Check my work 3 Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: 12 Department points Total Hardware Linens Sales $ 4, 180, 000 $ 3, 130,000 $ 1, 050,060 Variable expenses 1,352, 000 938, 060 414, 060 Contribution margin 2,828, 060 2, 192, 000 636, 060 eBook Fixed expenses 2,280,000 1,470, 000 810, 090 Net operating income (loss) $ 548,000 $ 722, 060 $ (174, 000) Print A study indicates that $377,000 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 17% decrease in the References sales of the Hardware Department. Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? Financial (disadvantage)

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