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IMPORTANT: Show calculations for support. 12 Vortex Company operates a retail store with two departments. Information about those departments follows. 0.87 points Department A Department
IMPORTANT: Show calculations for support.
12 Vortex Company operates a retail store with two departments. Information about those departments follows. 0.87 points Department A Department B $825,600 $ 464,400 445,000 301,860 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance 118,000 13,000 24,500 18,000 6,800 83,000 10,500 24,500 14,000 5,400 The company also incurred the following indirect costs. Salaries Insurance Depreciation Office expenses $31,000 7,800 16,000 48,000 Indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage, and office expenses on the basis of number of employees. Additional information about the departments follows. Department Square footage Number of employees KA 60 34,300 14,700 40 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. 2. Should Department B be eliminated? Answer is not complete. 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 Department B. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) VORTEX COMPANY Departmental Contribution Statements Department Department Sales Cost of goods sold Gross profit Direct expenses Salaries Insurance Utilities Depreciation Maintenance 0000 000 000 Total direct expenses 0 Allocated indirect expenses Salaries Insurance Depreciation Office Total indirect expenses Operating income (loss) 0 0 $ $ 0 Required 1 Required 2 >Step by Step Solution
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