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Dina 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 icon to viow additional information.) Dina Fashions Income Statement For the Quarter Ended September 30, 2018 Department Men's Women's Accessories 109,000 $ 52,000 $ 105,000 $ 57,000 32,000 90,000 Net Sales Revenue Total 266,000 179,000 Variable Costs Contribution Margin 52,000 25,000 27,000 $ 20,000 18,000 Fixed Costs 15,000 19,000 87,000 62,000 25,000 Operating Income (Loss) 2,000 $ (4,000) $ NUE 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 Dina Fashions drops a department, it will not incur these food costs. Under these circumstances, should Dina Fashions drop any of the departments? Give your reasoning Bogin 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 user decreases to profits with a parentheses or minus sign) er Dina Fashions Analysis of Dropping the Accessories Department Expected decrease in revenues Expected decrease in costs Expected decrease in variable costs Expected decrease in faed costs Expected decrease in total costs in operating income 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 m .. . Ch Expected decrease Expected increase ter any number in the input fields and then continue to Under these circumstances, should Dina Fashions drop any of the departments? Give your reasoning. Decision: Dina Fashions because Choose from any list or enter any number in the input fields and then continue to the next question Under these circumstances, should Dina Fashions drop any of the departments? Give your reasoning. Decision: Dina Fashions V because Choose from any list or should drop the Accessories Department should keep all the departments Intinue to the next question Expected decrease in fixed costs Expected decrease in total costs in operating income Under these circumstances, should Dina Fashions drop any of the department Decision Dina Fashions because relevant expenses are greater than the revenues which will result in an increase in operating income if the department is dropped revenues are greater than the relevant expenses which will result in a decrease in operating income if the department is dropped revenues from each department exceed variable expenses from each department Choose from any list of enter any number in the input fields and then continue to the next question Activate Windows
