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Merrill Company has 2 departments, Men's Clothing and Women's Clothing. Merrill s considering dropping the Women's Clothing department, and has gathered the following data: Men's
Merrill Company has 2 departments, Men's Clothing and Women's Clothing. Merrill s considering dropping the Women's Clothing department, and has gathered the following data: Men's Clothing Women's Clothing Tot Sales Variable expenses Direct fixed expenses Allocated fixed expenses Operating income $150,000 80,000 20,000 15,000 $80,000 46,000 38,000 15,000 $230,000 126,000 58,000 30,000 $35,000$(19,000) $16,000 Required: Calculate Merrill's operating income if the Women's Clothing department is dropped. Omit $ signs
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