Bonanza has two operating departments (Movies and Video Games) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. Departmental Income Statements For Year Ended December 31 Movies Video Games Combined Sales $600,000 $200,000 $800,000 Cost of goods sold 420,000 154,000 574,000 180,000 46,000 226,000 Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities Share of office department expenses Total expenses Income (loss) 49,500 21,000 70,500 4,000 1,000 5,000 4,500 3,000 7,500 41,000 9,000 50,000 7,380 1,620 9,000 56,250 18,750 75,000 162,630 54,370 217,000 $ 17,370 $ (8,370) $ 9,000 Required 1. Prepare a departmental contribution to overhead report (see Exhibit 22.12). 2. Should the video games department be eliminated? Explain.