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https/ewconne (Ch 10-12) Elegant Decor Company's management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several

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https/ewconne (Ch 10-12) 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 2017 departmental income statements shows the following Year Ended Decenber 31, 459,000 282,0 $721,000 Cost of roods sold Gress profit Operating expenses Advertising lies used ?4300 2.0,0 2,800 Allocated expenses , 200 52,000 ,418 ,200 Rent expeese Office satary Kiscellanesus office expenses debts 21,848 Tetal allecated expenses Total expenses Net income Closs) $ 52,150 $ (9,340) % 42.810 In analyzing whether to eliminate Department 200, management considers the following a. The company has one office worker who earns $700 per week, or $36,400 per year, and four sales clerks who each earn $400 per week, or $20.800 per year for each salesclerk b. The full salaries of two salesclerks are charged to Department 100. The full salary of one salesclerk is charged to Department 200. The salary of the fourth clerk, who works half-time in both departments, is dividded evenly between the two departments e Elminating Department 200 would avoid the sales salaries and the office salary currenthy allocated to it However

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