Question: Deela Fashions operates three departments Men s Women s and Accessories Departmental

Deela Fashions operates three departments: Men’s, Women’s, and Accessories. Departmental operating income data for the third quarter of 2014 are as follows:

Assume that the fixed costs assigned to each department include only direct fixed costs of the department:
• Salary of the department’s manager
• Cost of advertising directly related to that department
If Deela Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Deela Fashions drop any of the departments? Give yourreasoning.
View Solution:

Sale on SolutionInn
  • CreatedJanuary 16, 2015
  • Files Included
Post your question