could any body solve this question because i post it and oneperson answer it wrong. please if you don’t know the answer don’ttry to answer.
value: 9.00 points 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 $4,180,000 $3,030,000 1,150,000 Sales Variable expenses 1,216,000 805,000 411,000 Contribution margin 2,964,000 2,225,000 739,000 Fixed expenses 2,330,000 1,480,000 850,000 Net operating income (loss) 634,000 745,000 (111,000) 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 12% decrease in the sales of the Hardware Department Required: If the Linens Department is dropped, what will be the effect on the net operating income of the company as a whole? Answer is complete but not entirely correct 11,000x in net operating income Decrease Show transcribed image text value: 9.00 points 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 $4,180,000 $3,030,000 1,150,000 Sales Variable expenses 1,216,000 805,000 411,000 Contribution margin 2,964,000 2,225,000 739,000 Fixed expenses 2,330,000 1,480,000 850,000 Net operating income (loss) 634,000 745,000 (111,000) 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 12% decrease in the sales of the Hardware Department Required: If the Linens Department is dropped, what will be the effect on the net operating income of the company as a whole? Answer is complete but not entirely correct 11,000x in net operating income Decrease
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