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 departmental income statements show the following.

ELEGANT DECOR COMPANY Departmental Income Statements For Year Ended December 31, Dept. 100 Sales Cost of goods sold Gross profit Operating expenses Direct expenses Advertising Store supplies used DepreciationStore equipment Total direct expenses Allocated expenses Sales salaries Rent expense Bad debts expense Office salary Insurance expense Miscellaneous office expenses Total allocated expenses Total expenses Net income (loss) $447,000 261,000 186,000 16,000 5,000 5,000 26,000 65,000 9,430 9,500 15,600 2,300 2,100 103,930 129,930 $ 56,070 2019 Dept. 200 $287,000 212,000 75,000 12,500 4,600 3,900 21,000 39,000 4,710 7,500 10,400 1,500 1,300 64,410 85,410 $(1o,410) Combined $734,000 473,000 261,000 28,500 9,600 3,900 47,000 104,000 14,140 17,000 26,000 3,800 3,400 168,340 215,340 $ 45,660