Jansen Company reports the following for its ski department for the year 2015. All of its costs are direct, except as noted.

Sales	$	600,000
Cost of goods sold		425,000
Salaries		113,000	($26,000 is indirect)
Utilities		16,300	($5,600 is indirect)
Depreciation		47,400	($17,300 is indirect)
Office expenses		26,200	(all indirect)

1.

Prepare a departmental income statement for 2015.

2.	Prepare a departmental contribution to overhead report for 2015. 3. Based on these two performance reports, should Jansen eliminate the ski department?