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' 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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Mila Fashions Product Line Contribution Marg in Income Statement For the Year Product lines Women's Men's Accessories Compary Total 56,000 7 Sales revenue 8 Less:Variable expenses 9 Contribution margin 10 Less: Fxed expenses 11 Operating income 12 59,000 50,00026,000 18,000 179000 84,000 67,000 8,000 24,000