Zena Fashion in New York operates three departments: Men s, Women s, and Accessories. Zena Fashion allocates all fixed 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: The store will remain in the same building regardless of whether any of the departments are discontinued. Should Zena Fashion discontinue any of the departments? Give your reason.
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