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Gila Fashion in Detroit operates three departments: Men's, Women's, and Accessories. Gila Fashion allocates all fixed expenses (unavoidable building depreciation and utilities) based on
Gila Fashion in Detroit operates three departments: Men's, Women's, and Accessories. Gila 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: (Click the icon to view the data.) The store will remain in the same building regardless of whether any of the departments are discontinued. Should Gila Fashion discontinue any of the departments? Give your reason. The Men's and Women's Departments are eaming income. While the Accessories Department appears to be even this department has a positive contribution margin. The Accessories Department is contributing covering fixed costs. losing money, toward
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