Elegant Decor Companys management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The companys 2015 departmental income statements shows the following.

ELEGANT DECOR COMPANY Departmental Income Statements For Year Ended December 31, 2015 Dept. 100 $445,000 270,000 Dept. 200 $282,000 211,000 Combined 727,000 481,000 Sales Cost of goods sold Gross profit Operating expenses 175,000 71,000 246,000 Direct expenses Advertising Store supplies used Depreciation-Store equipment 16,000 5,000 4,400 13,000 4,600 2,700 29,000 9,600 7,100 Total direct expenses 25,400 20,300 45,700 Allocated expenses Sales salaries Rent expense Bad debts expense Office salary Insurance expense Miscellaneous office expenses 65,000 9,490 9,700 18,720 2,100 2,200 39,000 4,740 7,900 12,480 1,300 1,500 104,000 14,230 17,600 31,200 3,400 3,700 66,920 174,130 219,830 $42,390 (16,220 26,170 Total allocated expenses 107,210 Total expenses 132,610 87,220 Net income (loss) ELEGANT DECOR COMPANY Departmental Income Statements For Year Ended December 31, 2015 Dept. 100 $445,000 270,000 Dept. 200 $282,000 211,000 Combined 727,000 481,000 Sales Cost of goods sold Gross profit Operating expenses 175,000 71,000 246,000 Direct expenses Advertising Store supplies used Depreciation-Store equipment 16,000 5,000 4,400 13,000 4,600 2,700 29,000 9,600 7,100 Total direct expenses 25,400 20,300 45,700 Allocated expenses Sales salaries Rent expense Bad debts expense Office salary Insurance expense Miscellaneous office expenses 65,000 9,490 9,700 18,720 2,100 2,200 39,000 4,740 7,900 12,480 1,300 1,500 104,000 14,230 17,600 31,200 3,400 3,700 66,920 174,130 219,830 $42,390 (16,220 26,170 Total allocated expenses 107,210 Total expenses 132,610 87,220 Net income (loss)