0 Required information The following information applies to the questions displayed below Elegant Decor Company's management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company's 2017 departmental income statements show the following. ELEGANT DECOR COMPANY Departmental Income Statements For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Dept. 100 Dept. 200 Combined 453,000 $292,000 $745,000 267,000 214,000 481,000 78,000 264, 000 186, 000 Direct expenses Advertising Store supplies used Depreciation-Store equipment Total direct expensen 18,000 4,000 14,000 3,400 3,700 32,000 7,400 8,500 4,800047,900 26, 800 Allocated expenses Sales salaries Rent expense Bad debts expense Office salary Insurance expense Miscellaneous office expenses Total allocated expenses 78,000 46,800 124,800 4,79014,210 7,500 17,200 18,720 12,480 31,200 3,000 ,300 74,470194,710 147,040 95,570 242,610 38,960 $ (17,570) 21,390 9, 420 9,700 1,900 120,240 1,100 1,800 Total expenses Net income (loss)