begine 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.

Elana Fashions operates three departments Men's, Women's and Accessories Departmental operating income data for the third quarter of 2018 are as follows Click the icon to view the data) Click the con to view additional information) if Elana Fashions drops a department. It will not incur these feed costs. Under these circumstances, should Elana Fashions drop any of the departments? Give your reasoning Elana Fashions Income Statement For the Quarter Ended September 30, 2018 Department Men's Women's Accessories $ 107,000 $ 58,000 $ 99,000 $ 60,000 26,000 86,000 Total Net Sales Revenue Variabit Costs Contribution Margin 264,000 172,000 13,000 47,000 19,000 32,000 23,000 92,000 66,000 Fixed Costs 24,000 $ Operating Income (Loss) 28,000 $ 9,000 $ (11,000) $ 26,000 Assume that the fixed costs assigned to each department include only direct fixed costs of the department: Salary of the department's manager Cost of advertising directly related to that department Elana 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 ITI