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s, and Accessories. Departmental operating income data for the third quarter of 2025 are as follows: View the additional information, View the departmental operating income data. 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 Dw 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 CEED in operating income

s, and Accessories. Departmental operating income data for the third quarter of 2025 are as follows: View the additional information, View the departmental operating income data. 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 Dw 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 CEED in operating income

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: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
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
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
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