-Assign indirect expenses to its jewelry and shoes departments as appropriate -Prepare an income statement for July 201X showing departmental contribution margins along with net income. Assume 30% tax rate.

Indirect Costs Net Sales Merchandise Inventory (July 1) Merchandise Inventory (July 30) Purchases Purchases Discount Salaries Expense Depreciation Expense Advertising Expense Administrative Expense Rent Expense Jewelry (30,000 square feet) $275,000 55,000 39,000 180,000 11,000 2,800 26,000 1,200 Shoes (30,000 square feet) $225,000 80,000 36,000 98,000 22,000 1,500 21,000 2,400 $9,000 21,000 35,000 15,000