IThe following information applies to the questions displayed belowj 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 2015 departmental income statements shows the following. ELEGANT DECOR COMPANY Departmental Income Statements For Year Ended December 31, 2015 Dept. 100 Dept. 200 Combined 441,000 288,000 729,000 Sales 269,000 Cost of goods sold 209,000 478,000 251,000 172,000 79,000 Gross profit Operating expenses Direct expenses Advertising 17,500 14,000 31,500 Store supplies used 4,500 4.100 8,600 Depreciation-Store equipment 4,800 3,300 8.100 48,200 26,800 Total direct expenses 21,400 Allocated expenses 104,000 39,000 Sales salaries 65,000 14,190 Rent expense 9,410 4,780 9,500 Bad debts expense 7.200 16,700 26,000 Office salary 15,600 10,400 Insurance expense 1700 1,000 2,700 2,200 Miscellaneous office expenses 1,600 3,800 Total allocated expenses 63,980 103,410 167.390 85,380 215,590 Total expenses 130,210 41,790 (6,380) 35,410 Net income (loss)