Edna Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2018 are as follows:
EDNA FASHIONS
Income Statement
For the Quarter Ended September 30, 2018

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 Edna Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Edna Fashions drop any of the departments? Give your reasoning.

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Department Accessories Total Men's Women's Net Sales Revenue $ 59,000 35,000 $ 101,000 65,000 $ 102,000 $ 262,000 191,000 Variable Costs Contribution Margin 91,000 11,000 29,000 24,000 19,000 71,000 75,000 36,000 Fixed Costs Operating Income (Loss) 27,000 $ (4,000) $ 5,000 $ (18,000) 9,000