Exercise 13-17 (Algo) Dropping or Retaining a Segment [LO13-2) Bed & Bath, a retailing company, has two departments---Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $ 4,230,000 1,345,000 2,885,000 2, 340,000 $ 545,000 Department Hardware Linens $ 3,040,000 $ 1,190 932, 000 413 2, 108,000 777 1.450,000 890 $ 658,000 $ (113) A study indicates that $376,000 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 16% decrease in the sales of the Hardware Department Required: ercise 13-17 (Algo) Dropping or Retaining a Segment (LO13-2] 1 & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent nthly contribution format income statement follows: ales ariable expenses ontribution margin ixed expenses et operating income (loss) Total $ 4,230,000 1, 345,000 2,885,000 2,340,000 $ 545,000 Department Hardware Linens $ 3,040,000 $ 1,190,000 932, 000 413,000 2, 108,000 777,000 1,450,000 890,000 $ 658,000 $ (113,000) Cudy indicates that $376,000 of the fixed expenses being charged to Linens are sunk costs or allocated ts that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens partment 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? Financial (disadvantage)