Mila Fashion in Austin operates three departments: Men's, Women's, and Accessories. Mila 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: 3 (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 Mila Fashion discontinue any of the departments? Give your reason. The Men's and Women's Departments are even this department has a covering While the Accessories Department appears to be The Accessories Department is contributing $ toward 1 Data Table Mila Fashions Product Line Contribution Margin Income Statement For the Year Product lines Women's Accessories Sales revenue Men's 107,000 $ 61,000 52,000 $ 29,000 101,000 $ 92,000 Company Total 260,000 182,000 Less: Variable expenses Contribution margin 46,000 $ 24,000 22,000 $ Less: Fixed expenses 23,000 $ 18,000 5,000 $ 9,000 $ 26,000 (17,000) $ 78,000 68,000 10,000 Operating income First, calculate the relevant operating income from the Shoe Department. Devine Fashion Operating Income-Shoe Department Expected revenues Expected expenses: Variable expenses Fixed expenses Total expected expenses Expected relevant operating income Next, let's calculate the contribution margin of the Shoe Department. Devine Fashion Product Line Contribution Margin Income Statement For the Year Product lines Men's Women's Accessories Sales revenue $ 105,000 $ 52,000 $ 101,000 Less variable expenses 58,000 28,000 90,000 Contribution margin 47,000 24,000 11,000 Shoes Under these circumstances, should Devine Fashion drop any of the departments and replace it with a Shoe Department? The company should because