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22.5 Vortex Company operates a retall store with two departments. Information about those departments follows. The company also Incurred the following Indirect costs. Indirect costs
22.5
Vortex Company operates a retall store with two departments. Information about those departments follows. The company also Incurred the following Indirect costs. Indirect costs are allocated as follows: salarles on the basis of sales; Insurance and depreclation on the basis of square footage; and office expenses on the basis of number of employees. Additional Information about the departments follows. Requlred: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department 2. Should Department B be eliminated? Complete this question by entering your answers in the tabs below. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)Step by Step Solution
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