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Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales $ 625,000

Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted.

Sales $ 625,000
Cost of goods sold 440,000
Salaries 112,000 ($25,200 is indirect)
Utilities 17,000 ($5,500 is indirect)
Depreciation 43,200 ($17,500 is indirect)
Office expenses 26,200 (all indirect)

1. Prepare a departmental income statement for 2019. 2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department?

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2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department?

image text in transcribed

JANSEN COMPANY Departmental Income Statement-Ski Department For Year Ended December 31, 2019 Ski Dept 0 Operating expenses $ 0 JANSEN COMPANY Departmental Contribution to OverheadSki Department For Year Ended December 31, 2019 Ski Dept 0 Contribution to overhead $ 0 Should Jansen eliminate the ski department

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