ortex Company operates a retail store with two departments. Information about those departments follows. Department A Department B Sales $ 812,500 $ 437,500 Cost of goods sold 400,000 284,375 Direct expenses: Salaries 119,000 86,000 Insurance 14,000 10,700 Utilities 21,000 28,500 Depreciation 17,000 13,500 Maintenance 6,600 5,200 The company also incurred the following indirect costs. Salaries $32,000 Insurance 7,200 Depreciation 14,200 Office expenses 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 A 30,100 77 B 12,900 33 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?