Linda Fashion operates three departments Mon's, Women's and Accessories Departmental operating income data for the third quarter of the current years follows E (Click the icon to view the data) Assume that the fixed expenses assigned to each department include only direct fixed costs of the department (rather than unavoidable fixed costs) Salary of the department's manager Cost of advertising directly related to the department It Linda Fashion discontinues a department. It will not incur these food expensen. Under these circumstances, should Linda Fashion discontinuo any of the departments? Gwo your conson Complete the folowing analysis to determine the increase or decrease in operating income of dropping the Accessories Department, the only department showing an operating loss the quarter Incremental Analysis for Discontinuation Decision Total Contribution margin lost it Accessoris descontinued Less Fixed cost savings Accessories is discontinued Operating income Accessories is discontinued Under the circumstances should Linda Fashion drop any of the departments Decalon Linda Fashion should drop the Accessories Department should drop the Men's Department should drop the Women's Department should keep all the departments Choose from any lost or enter any number in the input tolds and then continue to the next question Type to search Assume that the fixed expenses assigned to each department include only direct fixed cos Salary of the department's manager Cost of advertising directly related to that department If Linda Fashion discontinues a department, it will not incur these fixed expenses. Under th Complete the following analysis to determine the increase or decrease in operating income Total Incremental Analysis for Discontinuation Decision Contribution margin lost if Accessories is discontinued Less: Fixed cost savings if Accessories is discontinued Operating income if Accessories is discontinued Under these circumstances, should Linda Fashion drop any of the departments? Decision Linda Fashion should drop the Accessories Department should drop the Men's Department should drop the Women's Department should keep all the departments honen manier 10 05 10WUWS. Data Table A B D 1 Linda Fashions N- Product Line Contribution Margin Income Statement For the Year 4 5 Men's Product lines Women's Accessories Company Total 52,000 $ 100,000 $ 258,000 28,000 90,000 178,000 6 Sales revenue S 106 000 $ 60,000 7 Less: Variable expenses 8 Contribution margin $ 46.000 S 24,000 24,000 $ 21,000 3,000 $ 10,000 $ 26.000 9 Less: Fixed expenses 80.000 71,000 9,000 S 22,000 $ (16,000) 10 Operating income Print Done then continue to the next question. Linda Fashion operates three departments Men's Women's and Accessories Department 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 (rather than unavoidable fixed costs) Salary of the department's manager Cost of advertising directly related to that department Linda Fashion discontinues a department, it will not incur these foed expenses Under these circumstances, should Linda Fashion discontinue any of the departments? Give your reason Complete the following analysis to determine the increase or decrease in operating income of dropping the Accessones Department, the only department showing an operating loss the quattor Incremental Analysis for Discontinuation Decision Total Contribution margin lost t Accessories is discontinued Loss Fared cost savings i Accessones is discontinued Operating income i Accessories is discontinued Under these circumstances should Linda Fashion drop any of the departments Decision lit Fa