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Alexa Fashions operates three departments: Men's, Women's, and Accessories. Departmental operating income data for the third quarter of 2024 are as follows: (Click the icon to view the data.) (Click the icon to view additional information.) If Alexa Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Alexa 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 Department showing an operating loss this quarter. (Enter decreases to profits with a parentheses or minus sign.) Alexa 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 Under these circumstances, should Alexa Fashions drop any of the departments? Give your reasoning. Decision: Alexa Fashions because (Click the icon to view the data.) (Click the icon to view additional information.) If Alexa Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Alexa 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 Departme showing an operating loss this quarter. (Enter decreases to profits with a parentheses or minus sign.) Alexa Fashions Analysis of Dropping the Accessories Department Expected decrease in revenues Expected decrease in costs: Expected decrease in variable costs Expected de Data table Expected de Under these circu Decision: Alexa F Alexa Fashions Income Statement For the Quarter Ended September 30, 2024 Department Men's Women's Accessories $ 105,000 $ 55,000 $ 103,000 $ 63,000 30,000 88,000 Total Net Sales Revenue 263,000 181,000 Variable Costs Contribution Margin Fixed Costs 42,000 29,000 25,000 21,000 15,000 26,000 82,000 76,000 $ 13,000 $ 4,000 $ (11,000) $ 6,000 Operating Income (Loss) Print Done (Click the icon to view the data.) (Click the icon to view additional information.) If Alexa Fashions drops a department, it will not incur these fixed costs. Under these circumstances, should Alexa 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 Departm showing an operating loss this quarter. (Enter decreases to profits with a parentheses or minus sign.) Alexa Fashions Analysis of Dropping the Accessories Department Expected decrease in revenues Expected decrease in costs: Expected decrease in variable costs Expected decrease in fixed More info Expected decrease in total in opera Under these circumstances, sho 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 Decision: Alexa Fashions Print Done

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