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Chestry 7 1 Bed & Batha retaling company has two deportinents--Hardwww and Linens. The company's most recent monthly contribution format Income statement follow Seart Total BER LINE Sales 14,530,000 3.10.10 8 1.199,00 Variable pe 1.000 3,40 02.100 Control 3.103, 2,201,79 T.14 Fid 1.100.000 1 Ooh A study indicates that $375,000 of the fixed expenses being charged to Liners are un costs of located costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in denen sales of the Hardware Department Required: What is the financial advantage disadvantage of scontinuing the Liners Dewane? Check my 7. re Bed & Bath, a retalling company has two departments Hardware and Linens. The company's most recent monthly contribution format income statement follows D Total Hardware LAR les 6,350,000 9, 140,000 1.110,000 Varese 14.00 443.000 contribution margin 1,000,000 2.1.0 Yo.000 depen 20.00 110.000 10.90 Netwerating Inc (1) CHO DECORE.CO A study indicates that $375.000 of the fed expenses being charged to Linens are son costs ar allocated costs that will continue even if the Linens Department is dropped. In addition the elimination of the Linens Department will result in a decrease in the sales of the Hardware Department Required: What is the financial advantage disadvantage of discontinuing the lines Department

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