Relevant Costing - Homework A Saved Help Save & Exit Submit Check my work 5 Bed & Bath, a retailing company, has two departmentsHardware and Linens. The company's most recent monthly contribution format income statement follows: 10 points Linens Skipped Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $ 4,200,000 1,273,000 2,927,000 2,340,000 $ 587,000 Department Hardware $ 3,170,000 $ 1,030,000 866,000 407,000 2,304,000 623,000 1,480,000 860,000 $ 824,000 $ (237,000) eBook A study indicates that $373,000 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. Print Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? o References