Exercise 12-17 A Saved Help Save & Exit Submit Check my work 1 Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: 10 points Salas Variable expenses Contribution sargin Fixed expenses Net operating income (1082) Department Total Hardware Linens $ 4,190,000 $3,150,000 $1,040,000 1,247,000 339,000 108,000 2,943,000 2,311,000 632,000 2,210,000 1,400,000 810,000 $ 733,000 $ 911,000 $ (178,000) Bool Print A study indicates that $372,000 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 18% decrease in the sales of the Hardware Department. References Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? Mc Graw Hill Este Prey 1 of 1 Next