Questien I (a) Best Electronics Pte Lid is an electronic relailer. Below is the departmental income statement for the year ended 31 December 2021 for the Home Entertainment and Home Appliance Departments. The CEO is considering closing the Home Appliance Department since it has a net loss. According to the ascomintant, only advertising. rent and wilities expenis's are indirect expenses. Required: (i) Present a departmental contribution report that shons cach department's contribution to overthead (10 marks) (ii) Explain whether you support the decision to close the Home Appliance Department. (3 marks) (b) On 24 December after the close of business, a devastating fire at Solaris Pharmaceutical destroyed the firm's raw materials and finished goods inventories. The following information is available: The firm's accountant determines that the cost of direct materials used normally averages 25% of prime costs. Required: Solaris Pharmaceutical is in the process of negotiating a settlement with its insurance company. Compute an estimate on the cost of the following that were destroyed by the fire: (i) Raw material inventory. (5 marks) (ii) Finished goods inventory. (7 marks)