180 CHAPTER 8 Women's, and Ace building depreciation 58-6 Decid e whether to discontinue a department (Learnin operates three departments: Men's, Wo Devine Fashion in Chicago ries. Devine Fashion allo utilities) based data for the third operating income ion allocates all fixed expenses (unavoidable bun on each department's square footage. Departmen quarter of the current year are as follows: Devine Fashions ncome Statement Product Line Contribution Margin Inco For the Year Product lines Accessories mpany Total Mens T women s 52,000 28,000 101,000 90,000 258,000 105,000 7 Sales revenue 8 Less: Variable expense 9 Contribution margin 10 L 8,000 10001 5-24,0001 s 11,000| (-160C 82.000 3,000 9,000 26,000 22000 2,000 25,000 ess: Fixed expenses 22 l_ Operating income- 12 The store will remain in the same building regardless of whether any of th ments are discontinued. Should Devine Fashion discontinue any of the departments your reason Dniced information (Learning Objective 4