Elegant Decor companys management is trying to decide whether to eliminate department 200,

Required information The following information applies to the questions displayed below. Elegant Decor Company's management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company's 2017 departmental income statements shows the following ELEGANT DECOR COMPANY Departmental Income Statements For Year Ended December 31, 2017 Dept. 100 Dept. 200 C ined 441,000 $286,000 $727,000 265,000 213,000 478 000 176,000 Sales Cost of goods sold Gross profit 73,000249. Operating expenses Direct expenses dvertiaing 13,500 ,200 ,6003,300 ,900 16,500 30,000 Store supplies used Depreoiatios-Store equipeent Total dsrect expenses 8,700 46,600 104,000 25,600 Allocated expenses Sales sslaries 65,000 ,000 ,780 7,300 14,560 14,260 9,500 21,840 1,900 ottice salary Kiscellaneous office expenses Total allocated expenses 99,640225,460 4010 16,640) 523,540 In analyzing whether to eliminate Department 200, management considers the foiowing: 2 n command 89,640 40,180 (16,640) 23,540 Total expenses 135,820 225,460 Net income (loss) in analyzing whether to eliminate Department 200, management considers the following a. The company has one office worker who earns $700 per week, or $36,400 per year, and four sales clerks who each b. The full earn $500 per week, or $26,000 per year for each salesclerk. Department 200. The salary salaries of two salesclerks are charged to Department 100. The full salary of one salesclerk is charged to of the fourth clerk, who works half-time in both departments, is divided evenly between the two departments Department 200 would avoid the sales salaries and the office salary currently allocated to it. However management prefers another plan. Two salesclerks have indicated that they will be quitting sood. Management believes that their work can be done by the other two clerks if the one office worker works in sales half-time. Eliminating Department 200 will allow this shift of duties.If this change is implemented, half the office worker's salary would be reported as sales salaries and half would be reported as office salary d. The store building is rented under a long-term lease that cannot be changed. Therefore, Department 100 will use the space and equipment currently used by Department 200 e. Closing Department 200 will eliminate its expenses for advertising, bad debts and store supplies: 67% of the expenses for insurance expense allocated to it to cover its merchandise inventory, and 25% of the presently allocated to it miscellaneous office expenses K Prev of9 Next 0 Required 1. Complete the followin expenses that would continue. The statement should reflect the reassignment of the office worker to one-half time as salesclerk ng report showing total expenses, expenses that would be eliminated by closing Department 200 and the ELEGANT DECOR COMPANY Analysis of Expenses under Elimination of Department 200 Eliminated Continul Direct expenses Alocaned expenses n command command option