Elana Fashions
Income Statement
For the Quarter Ended September 30, 2024
	Department
	Men's	Women's	Accessories	Total
Net Sales Revenue	$106,000	$52,000	$99,000	$257,000
Variable Costs	56,000	32,000	92,000	180,000
Contribution Margin	50,000	20,000	7,000	77,000
Fixed Costs	24,000	16,000	27,000	67,000
Operating Income (Loss)	$26,000	$4,000	($20,000)	$10,000

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

Elana Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2024 are as follows: (Click the icon to view the data.) (Click the icon to view additional information.) If Elana Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Elana 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.)