Question: need help with whole problem A B C D E 'I Devine Fashions 2 Product Line Contribution Margin Income Statement 3 For the Year 4
need help with whole problem


A B C D E 'I Devine Fashions 2 Product Line Contribution Margin Income Statement 3 For the Year 4 Product lines 5 Women's Accessories Company Total 6 Sales revenue 105.000 $ 52,000 258,000 7' Less: Variable expenses 28,000 176-000 8 Contribution margin 24,000 82,000 9 Less: Fixed expenses 73-000 10 Operating income $ 22.000 55 2,000 $ {15,000} $ 9,000 Devine Fashion in Chicago operates three departments: Men's. Women's, and Acoessories. Devine Fashion allocates all xed expenses {unavoidable building depreciation and utilities} based on each department's square footage. Departmental operating income data for the third quarter of the current year are as follows: 2:: (Click the icon to view the data.) The store will remain in the same building regardless of whether any of the departments are discontinued. Should Devine Fashion discontinue any of the departments? Give your reason. ' ' The Men's and Women's Departments are earning income. While the Accessories Department appears to be '05an money, _ _ _ _ _ ' 1 even this department has a PDSMVE Cmblln margin. The Accessories Department is contributing $ 11,900 toward covering xed COStS. Devine Fashion intends to remain in the same building whether or not it drops any of the departments. Consequently, the xed costs will remain the same whether or not Devine Fashion eliminates a department. These fixed costs are therefore in'elevant in the decision whether to eliminate a department. In sum, Devine Fashion il
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