Question: Checkm 6 Exercise 12-17 Dropping or Retaining a Segment (L012-2] 17 Bed & Bath, a retailing company has two departments---Hardware and Linens. The company's most

 Checkm 6 Exercise 12-17 Dropping or Retaining a Segment (L012-2] 17

Checkm 6 Exercise 12-17 Dropping or Retaining a Segment (L012-2] 17 Bed & Bath, a retailing company has two departments---Hardware and Linens. The company's most recent monthly contribution format Income statement follows: Department Total Hardware Linens $4,200,000 $3,840,000 $1,160,000 1,372,800 963,000 409,00 2.828.000 2,877,000 751,200 2,240,000 1.430,000 810.000 5 589,00 $ 647,000 $ 459,90) Sales Variable expenses Contribution margin Fixed expenses Niet operating Income (Loss) ok Print Rulote A study indicates that $371,000 of the fixed expenses being charged to Linens are sunk costs of allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Liners Department will result in a 15% decrease in the sales of the Hardware Department Required: What is the financial advantage (disadvantage of discontinuing the Linens Department

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