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Linda Fashion operates three departments. Men's, Women's, and Accessories. Departmental
operating income data for the third quarter of the current year are as IOuows: III (Click the icon
to view the data.) Astume that the foed expenses astigned to each department include only direct
fixed costs of the department (rather than unavoidable fixed costs) - Salary of the departments
managet 14 Linda Fashion discontinues a department, it wil not incur these foxed expenses.
Under these clicumstances, should Linda Fashlon discontinue any of the departments? Give -
Cost of advertising direcfy related to that department your reason
Complete the following analysis to dotermine the increase or decrease in operating income of
dropping the Accessories Depaitnent, the only departinent showing an operating loss this quarter
Data table

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Linda Fashion Department Analysis Q3 Profits

  • 1. Linda Fashion operates three departments. Men's, Women's, and Accessories. Departmental operating income data for the third quarter of the current year are as IOuows: III (Click the icon to view the data.) Astume that the foed expenses astigned to each department include only direct fixed costs of the department (rather than unavoidable fixed costs) - Salary of the departments managet 14 Linda Fashion discontinues a department, it wil not incur these foxed expenses. Under these clicumstances, should Linda Fashlon discontinue any of the departments? Give - Cost of advertising direcfy related to that department your reason Complete the following analysis to dotermine the increase or decrease in operating income of dropping the Accessories Depaitnent, the only departinent showing an operating loss this quarter Data table