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Zena Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income dat for the third quarter of 2024 are as follows: (Click the icon
Zena Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income dat for the third quarter of 2024 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. 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.) Zena Fashions Income Statement For the Quarter Fnded Sentemher 302024 More info Assume that the fixed costs assigned to each department include only direct fixed rating income costs of the department - Salary of the department's manager - Cost of advertising directly related to that department
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