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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please do not give solution in image format ? And Fast answering please and explain proper steps by Step.
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TO
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Departmental Operating Income Data
Show Transcribed Text
Net Sales Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income (Loss)
.
.
For the Quarter Ended September 30, 2025
Department
Women's
$
$
Men's
Deela Fashions
Income Statement
105,000 $
56,000
Additional Information
49,000
19,000
30,000 $
Print
Print
54,000 $
32,000
22,000
20,000
2,000 $
Done
Accessories
Salary of the department's manager
Cost of advertising directly related to that department
Done
105,000 $
86,000
Assume that the fixed costs assigned to each department include only direct fixed
costs of the department:
19,000
25,000
(6,000) $
Total
264,000
174,000
90,000
64,000
26,000
-X of 21
the de
bartmen
- X"
Transcribed Image Text:Del
he
TO
Be
op
Departmental Operating Income Data
Show Transcribed Text
Net Sales Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income (Loss)
.
.
For the Quarter Ended September 30, 2025
Department
Women's
$
$
Men's
Deela Fashions
Income Statement
105,000 $
56,000
Additional Information
49,000
19,000
30,000 $
Print
Print
54,000 $
32,000
22,000
20,000
2,000 $
Done
Accessories
Salary of the department's manager
Cost of advertising directly related to that department
Done
105,000 $
86,000
Assume that the fixed costs assigned to each department include only direct fixed
costs of the department:
19,000
25,000
(6,000) $
Total
264,000
174,000
90,000
64,000
26,000
-X of 21
the de
bartmen
- X

Transcribed Image Text:K
Deela Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2025 are as follows:
View the departmental operating income data.
View the additional information.
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 your reasoning
Begin by completing the following analysis to determine the increase or decrease in operating income from dropping the Accessories Department, the only spent showing an
operating loss this quarter. (Enter decreases to profits with a parentheses or minus sign.)
Deela Fashions
Analysis of Dropping the Accessories Department
Expected decrease in revenues
Expected decrease in costs:
Expected decrease in variable costs
Expected decrease in fixed costs
Expected decrease in total costs
in operating income
Expert Solution
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