Problem 22-4A Departmental contribution to income LOP3 Vortex Company operates a retail store with two departments. Information about those departments follows. Department a Department Sales $812,500 $437,500 Cost of goods sold 485,000 284,375 Direct expenses Salaries 121,000 80,000 Insurance 10,500 10,800 Utilities 23,000 29,500 Depreciation 15,500 12,000 Maintenance 6.600 5.900 The company also incurred the following indirect costs. Salaries Insurance Depreciation office expenses $30,000 6,800 15,800 40,000 Indirect costs are allocated as follows: solaries 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 32,900 14,100 Number of employees 77 33 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) VORTEX COMPANY Departmental Contribution Statements Department A Department B 0 0 Direct expenses Total direct expenses 0 Allocated indirect expenses 0 0 Total Indirect expenses Operating income (loss) $ 0 $ 2. Should Department B be eliminated? Yes O No