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a Fastion in New York operates three departments: Men's, Women's, and Accessories. Mila Fashion allocates fxed expenses (unavoidable building depreciation and utities) based on each

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a Fastion in New York operates three departments: Men's, Women's, and Accessories. Mila Fashion allocates fxed expenses (unavoidable building depreciation and utities) based on each departments square footage If the company discontinues one of the current racks, and so forth) per quarter reiated to the department. Departmental EEE (Click the icon to view the data.) What should the company do row? s7s.00n sies and $51,000 of variable coss Bete shoe business wouibee so iu i departments, E plans to replace the discortinued department with a Shoe Department. The company expects the Shoe Department to produce operating income date for the third quarter of this year are as follows Data Table First, calculate the releva? operatng ncome tom the Shoo Department Mila Fashion Mila Fashion Product Line Contribution Margin Income Statement For the Year Operating incom-Shoe Department Expected revenues Expected expenses: Product lines Variable expenses Fxed expenses Tetal expected expenses 130 Men's Women'sAccessories Company Total Sales revene Less: Variable expenses Expected reievanc operating income Under these ciroumstances, should Mila Fashion drop any of the departments and Mia Fashion should 110.000 S 52,000 S $ 51,000$ S 26000 $ 59,000 $ 51000 25,000 29,000 23.000s 21,000 98,000$ 8,000 10,000 $ 25,000 (15,000) $ 260,000 176,000 B4,000 1,000 13,000 Less Fixed expenses 2,000 S Operaing income Enter any number in the edit fields and then continue to the next question. Print Done bo

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