Data table A B C D E Mila Fashions Product Line Contribution Margin Income Statement For the Year 4 Product lines 5 Men's Women's Accessories
Data table A B C D E Mila Fashions Product Line Contribution Margin Income Statement For the Year 4 Product lines 5 Men's Women's Accessories Company Total 6 Sales revenue $ 107,000 $ 55,000 $ 101,000 $ 263,000 Less: Variable 7 expenses 59,000 29,000 91,000 179,000 Contribution margin $ 48,000 $ 26,000 $ 10,000 $ 84,000 9 Less: Fixed expenses 24,000 19,000 25,000 68,000 10 Operating income $ 24,000 $ 7,000 $ (15,000) $ 16,000Mila Fashion in Houston operates three departments: Men's, Women's, and Accessories. Mila 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: (Click the icon to view the data.) The Men's and Women's Departments While the Accessories are Department appears to be even this The Accessories department has Department is a contributing toward covering Mila Fashion intends to remain in the same building whether or not it discontinues any of the departments. Consequently, the fixed costs will whether or not Mila Fashion eliminates a department. These fixed costs are therefore in the decision whether to eliminate a department. In sum, Mila Fashion
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