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Zena Fashions Income Statement For the Quarter Ended September 30, 2018 Department Men's Women's Accessories Total Net Sales Revenue 108.000 $ 58,000 $ 99.000 $

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Zena Fashions Income Statement For the Quarter Ended September 30, 2018 Department Men's Women's Accessories Total Net Sales Revenue 108.000 $ 58,000 $ 99.000 $ 265.000 62.000 32.000 95.000 189.000 Variable Costs Contribution Margin 4G-000 26,000 4.000 76.000 23 000 25.000 25.000 73.000 Fixed Costs 23,000 $ 1.000 S (21,000) $ 3.000 Operating Income (Loss) Zena Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2018 are as follows: (Click the icon to view the data.) (Click the icon to view additional information.) If Zena Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Zena Fashions drop any of the departments? Give your reasoning Zena Fashions LI Zena 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

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