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 2015 departmental income statements shows the following ELEGANT DECOR COMPANY Departmental Income Statements For Year Ended December 31, 2015 Sales Cost of goods sold Dept. 100 444,000 262,000 Dept. 200 Combined $731,000 473,000 287,000 211,000 182,000 76,000 258,000 Gross profit Operating expenses Direct expenses Advertising Store supplies used Depreciation-Store equipment 16,500 5,500 4,800 13,000 5,000 3,200 29,500 10,500 8,000 Total direct expenses 26,800 21,200 48,000 Allocated expenses Sales salaries Rent expense Bad debts expense Office salary Insurance expense Miscellaneous office expenses 78,000 9,420 9,600 15,600 1,900 2,500 46,800 4,760 7,300 10,400 1,200 1,800 124,800 14,180 16,900 26,000 3,100 4,300 189,280 237,280 20,720 Total allocated expenses 117,020 72,260 Total expenses 143,820 93,460 Net income (loss) $ 38180 (17460)