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 Sales Cost of goods sold Gross profit Operating expenses Dept. 100 Dept. 200 Combined $441,000 $285,000 $726,000 212,000 475,000 73,000 251,000 263,000 178,000 Direct expenes Advertising Store supplies used Depreciation-Store equipment Total direct expenses 17,000 6,000 4.200 13,500 5,500 2,500 21,500 30,500 11,500 6,700 48,700 27,200 800 Allocated expenses Sales salaries Rent expense Bad debts expense office salary Insurance expense Miscellaneous office expenses Total allocated expenses 39,000 104,000 14,230 16,900 31,200 3,500 3,900 173,730 222,430 43,730 (15,160) 28,570 65,000 9,450 9,500 18,720 2,100 7,400 12,480 1,400 107.070 134,270 66,660 88,160 Total expenses Net income (loss) rsa lid rt 's so eyno w er n e a s n th peat 0 nests pl e ul sen gMkh he de a i e cneee gh e anp ose Ina oes fps exa e On Required: 1. Complete the following report showing total expenses, expenses that would be eliminated by closing Department 200 and the expenses that would continue. The statement should reflect the reassignment of the office worker to one-half time as salesclerk. ELEGANT DECOR COMPANY Analysis of Expenses under Elimination of Department 200 Total Eliminated Continuing nses Expenses Ex Direct expenses 501s $ 0