Astudy indicates that $371,000 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 16% decrease in the sales of the hardware department. required: what is the financial advantage (disadvantage) of discontinuing the linens department

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.