Sheila Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2024 are as follows: (Click the icon to view the data.) i(Click the icon to view additional information.) If Sheila Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Sheila 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.) Sheila 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 operating income Under these circumstances, should Sheila Fashions drop any of the departments? Give your reasoning. Decision: Sheila Fashions because Data table Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income (Loss) For the Quarter Ended September 30, 2024 Department Women's $ Sheila Fashions Income Statement $ Men's 108,000 $ 63,000 45,000 28,000 17,000 $ Print 52,000 $ 34,000 18,000 16,000 2,000 $ Done Accessories 99,000 $ 89,000 10,000 25,000 (15,000) $ Total 259,000 186,000 73,000 69,000 4,000 X mpl ss th dec dec ed ced ced More info 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 Print Done - X