he Ski department reports sales of $$605,000$ and cost of goods sold of $$425,000.$ Its expenses follow.

Direct expenses Indirect expenses Service department expenses

Salaries $ $112,000$ Rent $ $14,000$ Office $ $20,000$

Depreciation $42,000$

$1.$ For the Ski department only, prepare a departmental income statement.

$2.$ & $3.$ For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated?