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Deela Fashion in Chicago operates three departments Men's Women's and Accessories. Decla Fashion allocates aled expenses (unavoidable building depreciation and utilities based on each department's
Deela Fashion in Chicago operates three departments Men's Women's and Accessories. Decla Fashion allocates aled 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 store will remain in the same building regardless of whether any of the departments are discontinued. Should Doela Fashion discontinue any of the departments? Give your reason The Men's and Women's Departments we even this department has a covering While the Accessories Department appears to be The Accessories Department is contributing toward Deela Fashions Product Line Contribution Margin Income Statement For the Year Product lines Men's Women's Accessories $ 108,000 $ 52,000 $ 101,000 $ 58,000 31,000 88,000 Sales revenue Company Total 261,000 177,000 Less: Variable expenses Contribution margin 50,000 $ 25,000 21,000 $ 18,000 3,000 $ 13,000 $ 25,000 84,000 68,000 Less: Fixed expenses 25,000 $ (12,000) $ 16,000 Operating income
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