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Gaston Fashion store operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of the current year are as follows:
Gaston Fashion store 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 Salary of the department's manager Cost of advertising directly related to that department If Gaston Fashion drops a department, it will not incur these fixed expenses Under these circumstances, should Gaston Fashion drop any of the departments? Give your reason EESEYCHICO Decrease in expenses S Variable expenses 38,000 Fixed expenses 24 000 Decrease in total expenses 62.000 1,000 Increase (decrease) in operating income Complete the following analysis to determine the increase or decrease in operating income of dropping the Accessories Department (Use parentheses or a minus sign to enter a decrease in operating income.) S Gaston Fashion Analysis of Dropping the Accessories Department Operating income data Decrease in revenues Decrease in expenses Variable expenses Department Men's Women's Accessories S 94000 $ 61.000 $ 101 000 $ Fixed expenses Sales revenue Total 256.000 Decrease in total expenses Variable expenses Increase (decrease) in operating income 53000 19,000 38,000 24,000 Fixed expenses 81,000 28.000 172.000 71,000 12,000 62.000 109,000 243,000 Total expenses Operating Income loss) Help me solve this Video Get more help S 22,000 S (1.000) (8000) 13,000
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