Knight Fashion store operates three departments Men s Women s and Accessories
Knight Fashion store operates three departments: Men’s, Women’s, and Accessories. Knight
Fashion allocates all fixed expenses (unavoidable building depreciation and utilities) based on each department’s floor space. Departmental operating income data for the third quarter of the current year are as follows:
The store will remain in the same building regardless of whether any of the departments are dropped. Should Knight Fashion drop any of the departments? Give your reason.
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