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