Alexa Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of $2025$ are as follows:

View the departmental operating income data.

View the additional information.

If Alexa Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Alexa Fashions drop anv of the departments? Give vour reasoning.

Begin by completing the following analysis to determine the increase or decrease in operating income from dropping the Accessories Department, the only Department showing an operating loss this quarter. $($Enter

decreases to profits with a parentheses or minus sign.$)$

Alexa Fashions

Analysis of Dropping the Accessories Department

Expected decrease in revenues

Expected decrease in costs:

Expected decrease in variable costs

Expected decrease in fixed costs

Expected decrease in total costs

in operating income

Additional information: Assume that the fixed costs assigned to each department include only direct fixed cost of the department: a$.)$ salary of the department's manager b$.)$ cost of advertising directly related to that department