Burien, Inc., operates a retail store with two departments, A and B. Its departmental income statement for the current year follows: BURIEN, INC. Departmental Income Statement For Year Ended December 31 Dept. A Dept. B Combined Sales $180,000 $200,000 $380,000 Direct expenses 129,900 142,870 272,770 Contributions to overhead $ 50,100 $ 57,130 $107,230 Indirect expenses: Depreciation--Building 10,000 11,760 21,760 Maintenance 1,600 1,700 3,300 Utilities 6,200 6,320 12,520 Office expenses 1,800 2,000 3,800 Total indirect expenses $ 19,600 $ 21,780 $ 41,380 Net income $ 30,500 $ 35,350 $ 65,850 Burien allocates building depreciation, maintenance, and utilities on the basis of square footage. Office expenses are allocated on the basis of sales. Management is considering an expansion to a three-department operation. The proposed Department C would generate $120,000 in additional sales and have a 17.5% contribution to overhead. The company owns its building. Opening Department C would redistribute the square footage to each department as follows: A, 19,040; B, 21,760 sq. ft.; C, 13,600. Increases in indirect expenses would include: maintenance, $500; utilities, $3,800; and office expenses, $1,200. Complete the following departmental income statements, showing projected results of operations for the three sales departments. (Round amounts to the nearest whole dollar.) Dept. A Dept. B Dept. C Combined Sales......................................................................... $180,000 $200,000 Direct expenses....................................................... 129,900 142,870 Contributions to overhead...................................... $ 50,100 $ 57,130 Indirect expenses...................................................... Depreciationbuilding...................................... Maintenance....................................................... Utilities.............................................................. Office expenses.................................................. Total indirect expenses...................................... Net income...............................................................