Fashion store operates threedepartments: Men's,Women's, and Accessories.

Knight Fashion allocates all fixed expenses(unavoidable building depreciation andutilities) based on eachdepartment's floor space. Departmental operating income data for the third quarter of the current year are asfollows:

X Operating income data Department Men's Women's Accessories Total Sales revenue . . . 105,000 $ 54,000 $ 100,000 $ 259,000 Variable expenses . . . . . 60,000 30,000 80,000 170,000 Fixed expenses. . . . 25,000 30,000 25,000 80,000 Total expenses . .. 85,000 60,000 105,000 250,000 $ Operating income (loss) 20,000 $ (6,000) $ (5,000) $ 9.000The Men's Department is While the Women's and Accessories Departments appear to be . even these departments have a The Women's Department is contributing $ land the Accessories Department is contributing $ toward covering Knight Fashion intends to remain in the same building whether or not it drops any of the departments. Consequently, the company's total fixed costs will whether or not Knight Fashion eliminates a department. Fixed costs are therefore in the decision whether to eliminate a department. In sum, Knight Fashion should