Required information The following information applies to the questions displayed below.] Elegant Decor Company's management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company's 2017 departmental income statements shows the following ELEGANT DECOR COMPANY Departmental Income Statements For Year Ended December 31, 2017 Dept. 100 Dept. 200 Combined $721,000 $283,000 65,000 211 00-245,000 72,000 $438,000 Sales Cost of goods sold Gross profit Operating expenses 173,000 000476,000 Direct expenses Advertising Store supplies used Depreciation-Store equipment Total direct expenses 16,500 6,000 4,600 27,100 12,500 5,400 3,400 21,300 29,000 11,400 8,000 48,400 Allocated expenses Sales salaries Rent expense Bad debts expense Office salary Insurance expense Miscellaneous office expenses Total allocated expenses 52,000 9,490 9,900 15,600 2,500 2,200 91,690 118,790 $ 54,210 31,200 4,780 7,700 10,400 1,700 1,500 57,280 78,580 $ (6,580) 83,200 14,270 17,600 26,000 4,200 3,700 148,970 197,370 47,630 Total expenses Net income (loss)