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Answer is $7000 Decla Fashion in Seattle operates three departments: Men's, Women's, and Accessories. Doela Fashion allocates all fixed expenses (unavoidable building depreciation and utilities)
Answer is $7000
Decla Fashion in Seattle operates three departments: Men's, Women's, and Accessories. Doela Fashion allocates all fixed expenses (unavoidable building depreciation and utilities) based on each department's square footage. Departmental operating income data for the third quarter of the current year are as follows: E: (Click the loon to view the data.) The store will remain in the same building regardless of whether any of the departments are discontinued. Should Deela Fashion discontinue any of the departments? Give your reason. The Men's and Women's Departments are earning income. While the Accessories Department appears to be even this department has a positive contribution margin. The Accessories Department is contributing covering fixed costs. losing money toward i Data Table A B C D E Deela Fashions Product Line Contribution Margin Income Statement 1 2 3 4 For the Year 5 5 Men's Product lines Women's Accessories Company Total 56,000 $ 98,000 $ 259,000 28,000 91,000 179,000 6 Sales revenue $ 105.000 S 60,000 7 Less: Variable expenses 8 Contribution margin $ Choose from any list or enter any number in the input fields and then click Check Answer. 45,000 S 24,000 28,000 $ 20,000 7,000 $ 26,000 80,000 70,000 9 Less: Fixed expenses 21,000 S 8,000 $ (19,000) $ 10,000 2 parts remaining Clear All 10 Operating incomeStep by Step Solution
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