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

Sales	$	615,000
Cost of goods sold		445,000
Salaries		111,000	($25,200 is indirect)
Utilities		14,200	($5,800 is indirect)
Depreciation		45,800	($17,800 is indirect)
Office expenses		23,000	(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?

Prepare a departmental income statement for 2019.

JANSEN COMPANY
Departmental Income StatementSki Department
For Year Ended December 31, 2019
	Ski Dept
Operating expenses

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

JANSEN COMPANY
Departmental Contribution to OverheadSki Department
For Year Ended December 31, 2019
	Ski Dept
Contribution to overhead
Should Jansen eliminate the ski department?