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Dina Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2016 are as follows: (Click the icon
Dina Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2016 are as follows: (Click the icon to view the data.) 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 If Dina Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Dina Fashions drop any of the departments? Give your reasoning. Begin 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. (Enter decreases to profits with a parentheses or minus sign.) Data table
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