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Exercise 12-17 Dropping or Retaining a Segment LO12-2] 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 Sales 4,220,000 3,030,000 $ 1,190,000 Variable expenses 1,265,088 861,088 Contribution marg in 2,955,00 2,169,00e 786,800 Fixed expenses 1,340,000 880,000 $735,00 829,(94,00e) Net operating income (loss) 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 16% decrease in the sales of the Hardware Department Required What is the financial advantage (disadvantage) of discontinuing the Linens Department