Deela Fashion operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of the current year are as follows: (Click the icon to view the data.) Assume that the fixed expenses assigned to each department include only direct fixed costs of the department (rather than unavoidable fixed costs): Salary of the department's manager Cost of advertising directly related to that department If Deela Fashion discontinues a department, it will not incur these fixed expenses. Under these circumstances, should Deela Fashion discontinue any of the departments? Give your reason. i Data Table Complete the following analysis t operating loss this quarter. - X ving a Incremental Analysis 1 Contribution margin lost if Acces Deela Fashions Product Line Contribution Margin Income Statement For the Year Less: Fixed cost savings if Acces Operating income Under these circumstances, shoy Product lines Women's 52,000 $ 29,000 Men's 106,000 $ 59,000 Sales revenue Accessories 102,000 $ 92,000 Company Total 260,000 180,000 Decision: Deela Fashion Less: Variable expenses Contribution margin Choose from any list or enter ar 47,000 $ 25,000 23,000 $ 19,000 10,000 $ 25,000 80,000 69,000 Less: Fixed expenses 22,000 $ 4,000 $ (15,000) $ 11,000 Operating income Complete the following analysis to determine the increase or decrease in operating income of dropping the Accessories Department, the only department showing an operating loss this quarter. Total Incremental Analysis for Discontinuation Decision Contribution margin lost if Accessories is discontinued Less: Fixed cost savings if Accessories is discontinued Operating income L i f Accessories is discontinued Under these circumstances, should Deela Fashion drop any of the departments? Decision: Deela Fashion