P23-7B World Travel.com is an Internet-based travel agency. The company has a Custom Travel Department and a Group Discount Travel Department. At August 31, the end of World- Travel's fiscal year, the bookkeeper prepared the adjusted trial balance at the top of the next page. Last September. World Travel hired a specialist in group discount travel at an annual salary ol $27,000. Remaining agent salaries of $12.500 are for part-time agents who handle custom travel plans. The office manager spends 70% of her time on group discount plans and 30% on custom travel planning. The bookkeeper spends approximately two-thirds of his time on accounting for custom travel and the remainder on group discount plans. About 80% of the time spent developing and maintaining the Web site is for custom travel, and the remaining 20% is for group discount packages. Insurance expense is evenly divided between the two departments. The company allocates commissions and all other expenses based on relative service revenue. Cash Receivables. Prepaid expenses. Building and office furniture Accumulated depreciation-building and furniture Other assets. Accounts payable. Accrued liabilities. Unearned service revenue Owners' equity... Custom travel service revenue.. $ 2,400 29,700 1,700 115.600 $ 28,200 5.300 11,400 6,900 5,800 19,200 88,000 Salary expense-travel agents Group discount travel service revenue Commission expense-travel agents. 132,000 39,500 30,800 Salary expense-office manager. 25,000 Salary expense-bookkeeper. 16,800 Web site maintenance expense. 15,000 Property tax expense 2,200 Depreciation expense-building and furniture. 4,600 Insurance expense 1,700 Web advertising expense 1.200 $291,500 $291,500 Required 1. Prepare departmental income statements. 2. Which department is more profitable? Was the decision to hire the group specialist wise? Give your reason.