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ew Saved Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $845,000 405,000 Department B $455,000 295, 750

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ew Saved Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $845,000 405,000 Department B $455,000 295, 750 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance 124,000 19,500 24,500 18,000 6,100 80,000 10,000 26,500 13,500 5,400 The company also incurred the following indirect costs. Salaries Insurance Depreciation office expenses $34,000 6,600 15,800 48,000 Indirect costs are allocated as follows: salaries on the basis of sales, insurance and depreciation on the basis of square footage: office expenses on the basis of number of employees. Additional information about the departments follows. Department A Square footage 31,500 13,500 Number of employees 70 30 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department 8. 2. Should Department B be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the departmental contribution to overhead and the departmental net income for department A and (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) VORTEX COMPANY Departmental Contribution Statements Department A Department B 0 Direct expenses Total direct expenses 0 Allocated indirect expenses Total Indirect expenses Operating income (loss) 0 0 $ 0 $ Regard Required 2 > Number Department A B Square footage 31,500 13,500 70 30 Required: 1. Determine the departmental contribution to overhead and the departmental net income for d 2. Should Department B be eliminated? ook Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should Department B be eliminated? Should Department B be eliminated?

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