Freedom Company has three departments. Data for the most recent year are presented below:

Dept. X Dept. Y Dept. Z

Sales $400 $200 $80

Variable expenses 128 52 34

Unavoidable fixed expenses 96 52 12

Avoidable fixed expenses 116 104 54

Required: (18 points)

A) Compute the operating income for Freedom Company.

B) Compute the contribution margin for each department.

C) Compute the operating income for each department.

D) Which department(s) should be eliminated? Why?