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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
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 additional information.) EEB (Click the icon to view the data.) If Zena Fashions drops a department, it will not incur these fied costs. Under these circumstances, should Zena 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 s Zena Fashions More Info Analysis of Dropping the Accessories Department Expected decrease in revenues Expected decrease in costs: Assume that the fixed costs assigned to each department include only direct fixed costs of the department Expected decrease in variable costs Expected decrease in fixed costs Expected decrease in total costs Salary of the department's manager .Cost of advertising directly related to that department in operating income PrintDone Under these circumstances, should Zena Fashions drop any of the departments? Give your reasoning. Decision: Zena Fashions becaUse Data Table Zena Fashions Income Statement For the Quarter Ended September 30, 2018 Department Men's Women's Total 95,000 S 88,000 7,000 19,000 (12,000) S Net Sales Revenus Variable Costs Contribution Margin Fixed Costs Operating Income (Loss) 110,000 63,000 47,000 29,000 18,000 $ 55,000 $ 28,000 28,000 18,000 10,000 $ 261,000 179,000 82,000 66,000 16,000 Choose from any list or enter any number in the input felds and then continue to the next
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