Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution

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Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly
contribution format income statement follows:
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 15% decrease
in the sales of the Hardware Department.
Required:
What is the financial advantage (disadvantage) of discontinuing
the Linens Department?