ers each season. your analysis. 2. Assume that Mount Snow has found ways to cut its fixed costs to $28.5 million. When is its new target variable cost per skier/snowboarder? Compare this to the current variable cost per skier/snowboarder. Comment on your results. S8-5 Decide whether to discontinue a department (Learning Objective 4) Mila Fashion in New York 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: SE Mila Fashions Product Line Contribution Margin Income Statement For the Year SE 1 2 3 4 5 6 7 Sales revenue 8 Less: Variable expenses 9 Contribution margin 10 Less: Fired expenses 11 Operating income 12 Men's $ 109,000 59.000 5 50,000 24,000 $ 26,000 Product lines Women's $ 56,000 30,000 $ 26,000 18,000 S 8,000 Accessories $ 98,000 90,000 $ 8,000 25,000 s (17,000 Company Total $ 263.000 $ 179,000 $ 84,000 $ 67,000 $ 17,000 The store will remain in the same building regardless of whether any of the depart ments are discontinued. Should Mila Fashion discontinue any of the departments? Give your reason dollars and as a percent of assets. Will investors be happy with the profit level? Show