Problem 22-4A Departmental contribution to income LO P3 Vortex Company operates a retail store with two departments. Information about those departments follows. Department A Department B $838,500 $451,500 465,000 293,475 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance 116,000 12,500 21,000 20,000 7,000 84,000 10,900 29,500 12,500 5,800 The company also incurred the following indirect costs. Salaries Insurance Depreciation Office expenses $31,000 7,200 15,400 40,000 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. Number of employees Department A B Square footage 30,800 13,200 66 44 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? Required 1 Required 2 Determine the departmental contribution to overhead and the departmental net income for department A and Dep (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) VORTEX COMPANY Departmental Contribution Statements Department A Department B Sales $ 838,500 $ 451,500 Cost of goods sold 465,000 293,475 Gross profit 373,500 158,025 Direct expenses Salaries 116,000 84,000 Insurance 12,500 10,900 Utilities 21,000 29,500 Depreciation 20,000 12,500 Maintenance 7,000 5,800 176,500 142,700 Total direct expenses Departmental contributions to overhead Allocated indirect expenses Salaries Insurance Depreciation Office 0 0 Total indirect expenses Operating income (loss) $ 0 $ 0 Required 1 Required 2 Should Department B be eliminated? Should Department B be eliminated