2. Fancy Footwear is a shoe store that has three departments: mens, womens and childrens. Sales and variable costs for each department are shown below. In addition, each department has its own fixed costs for staffing and takes a one-third (1/3) share of rental and management costs for the clothing store as a whole (as shown in the table below).

	Mens	Womens	Childrens
Sales	$154,000	$276,000	$147,000
Variable costs as a percentage of department sales	47%	52%	48%
Departmental fixed costs	$65,000	$60,000	$30,000
Departments portion of shared fixed costs	$30,000	$30,000	$30,000

1. Calculate the profitability of Fancy Footwears three departments. (5 marks)

2. Management is considering shutting down one or more of Fancy Footwears departments, and would like your advice. What recommendations can you provide management? (3 marks)