Question

Consider Mila Fashion from S8- 5. Assume that the fixed expenses assigned to each ­department include only direct fixed costs of the department (rather than unavoidable fixed costs as given in S8- 5):
• Salary of the department’s manager
• Cost of advertising directly related to that department
If Mila Fashion discontinues a department, it will not incur these fixed expenses. Under these circumstances, should Mila Fashion discontinue any of the departments? Give your reason.
From S8-5


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  • CreatedAugust 27, 2014
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