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Mila Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2024 are as follows: BE(Click the icon

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Mila Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2024 are as follows: BE(Click the icon to view the data.) i (Click the icon to view additional information.) If Mila Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Mila Fashions drop any of the departments? Give your reasoning. Begin by completing the following analysis to determine the increase or decrease in operating income from dropping the Accessories Department, the only Department showing an operating loss this quarter. (Enter decreases to profits with a parentheses or minus sign.) Mila Fashions Analysis of Dropping the Accessories Department X Expected decrease in revenues Data table Expected decrease in costs: Expected decrease in variable costs Mila Fashions Expected decrease in fixed costs Income Statement Expected decrease in total costs For the Quarter Ended September 30, 2024 Department |in operating income Men's Women's Accessories Total Net Sales Revenue 105,000 $ 55,000 $ 96,000 $ 256,000 55,000 25,000 90,000 170,000 Expected decrease Variable Costs Contribution Margin 50,000 30,000 6,000 86,000 Expected increase 19,000 16.000 19,000 54,000 Fixed Costs 31,000 $ 14,000 S (13,000) $ 32,000 Operating Income (Loss) Print Done X on 10 More info on 11 Assume that the fixed costs assigned to each department include only direct fixed costs of the department:" Salary of the department's manager Cost of advertising directly related to that department ion 12 stion 13 Print Done Clear all Check answer me solve this Demodocs example Get more help

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