X 58-6 (similar to) Question Help Zena Fashion in Boston operates three departments: Men's, Women's, and Accessories. Zena 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: (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 Zena Fashion discontinue any of the departments? Give your reason. - X Data Table The Men's and Women's Departn even this department has a posi covering fixed costs. Zena Fashions Product Line Contribution Margin Income Statement For the Year Product lines Men's Women's Accessories Company Total Sales revenue $ 107,000 $ 58,000 55,000 $ 32,000 103,000 $ 90,000 265,000 180,000 Less: Variable expenses Contribution margin $ 49,000 $ 24,000 23,000 $ 22,000 13,000 $ 25,000 85,000 71,000 Less: Fixed expenses $ 25,000 $ 1,000 $ (12,000) $ 14,000 Operating income Print Done Choose from any list or enter any Zena Fashion in Boston operates three departments: Men's, Women's, and Accessories. Zena Fashion allocates all fixed expenses (unavoidable building depreciatio and utilities) based on each department's square footage. Departmental operating income data for the third quarter of the current year are as follows: (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 Zena Fashion discontinue any of the departments ? Give your reason. losing money, The Men's and Women's Departments are earning income. While the Accessories Department appears to be even this department has a positive contribution margin. The Accessories Department is contributing $ covering fixed costs. toward - X Data Table Zena Fashions Product Line Contribution Margin Income Statement For the Year Product lines Men's Women's Accessories Company Total Sales revenue $ 107,000 $ 58,000 55,000 $ 32,000 103,000 $ 90,000 265,000 180,000 Less: Variable expenses Contribution margin $ 49,000 $ 24,000 23,000 $ 22,000 13,000 $ 25,000 85,000 71,000 Choose from any list or enter any Less: Fixed expenses $ 25,000 $ 1,000 $ (12,000) $ 14,000 Operating income 2 parts remaining