Exercise 11-17 Dropping or Retaining a Segment [LO11-2) Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format Income statement follows: rtment Total Sales variable expenses 397 000 Contribution margin 2,673,000 2,034,000 Fixed expenses Net operating income s 393,000 564,000171, 000) { loan ) $4,070,000 $3,030,000 $1,040,000 401,000 639, 000 810,000 Hardware 996,000 2,280,000 1,470,000 A study Indicates that $374,000 of the fbxed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elmination of the Linens Department will result in a 16% decrease in the sales of the Hardware Department. Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? disadvan