$100$ will use the space and equipment currently used by Department $200.$

e$.$ Closing Department $200$ will eliminate its expenses for advertising, bad debts, and store supplies; $73\%$ of the insurance expense allocated to it to cover its merchandise inventory; and $24\%$ of the miscellaneous office expenses presently allocated to it$.$

$2.$ Prepare a forecasted annual income statement for the company reflecting the elimination of Department $200$ assuming that it will not affect Department $100\text{'}$s sales and gross profit. The statement should reflect the reassignment of the office worker to one$-$half time as a salesclerk.

$\backslash$table$[[$ELEGANT DECOR COMPANY$],[$Forecasted Annual Income Statement,$],[$Under Plan to Eliminate Department $200,],[,],[,],[$Operating expenses,$],[,],[,],[,]]$