Question: value 2.00 points Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement follows:
value 2.00 points Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement follows: Total Hardware Linens 4,130,000 $3,050,000 1,080,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) 1,381,000 2,749,000 2,078,000 972,000 409,000 671,000 890,000 $ 479,000 698,000 (219,000) A study indicates that $375,000 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 11% decrease in the sales of the Hardware Department
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