-X Data Table Fatin Linda Fashions Income Statement For the Quarter Ended September 30, 2018 Department Men's Women's Accessories 109,000 $ 57,000 $ 100,000 $ 58,000 33,000 85,000 Net Sales Revenue Total 266,000 176,000 Variable Costs Contribution Margin 51,000 21,000 24,000 15,000 15,000 19,000 90,000 55,000 Fixed Costs $ 30,000 $ 9,000 $ (4,000) $ 35,000 Operating Income (Loss) Print Done Linda Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2018 are as follows: E!! (Click the icon to view the data.) (Click the icon to view additional information.) If Linda Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Linda 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.) Linda 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 Linda Fashions drop any of the departments? Give your reasoning. Decision: Linda Fashions because