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Hi I really need help with this accounting problem for class please. Thank you. Linda Fashions operates three deparments: Men's, Women's, and Accessories Departmental operating
Hi I really need help with this accounting problem for class please. Thank you.
Linda Fashions operates three deparments: Men's, Women's, and Accessories Departmental operating income data for the third quarter of 2018 are as follows: Click the icon to view the data) (Click the icon to view additional information.) 11 Linca Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Linda Fashions drop any of the departmente? Olve your reasoning Begin by completing the following analysis to determine the increase or decrease in operating income from dropping the coassories Department, the only Deparment showing an operating loss this quarter. (Enter decreases to profits with a parentheses or minus sign Linda Fashions Analysis of Dropping the Accessories Department Expected decrease in revenues Expected decrease in costs Expected decrease in variable costs Expected decrease in fixed costs Expected decrease in total costs in ocerating incorner Data table Under these circumstances, should Linde Fashions drop any of the departments? Give your reasoning. Decision: Linda Fashions because More info Linda Fashions Income Statement For the Quarter Ended September 30, 2018 Department Men's Women's Accessories 5 5 105,000 $ 54.000 $ 105.000 $ 56.000 30.000 26.000 Total Net Sales Revenue Variable costs 264,000 172,00 Assume that the fixed 08e assigned to each department Include only direct fixed cost of the department . Salary of the department's manager Cost of advertising directly related to that department Contribution Margin 49,000 24,000 19,000 92,000 63,000 16.000 24.000 Fixed Costs 23,000 26,000 $ 5 8,000 $ (5.000) $ 29,000 Operating Income (Loss)Step by Step Solution
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