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 produc 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 $438,000 $281,000 $719,000 210,000473,000 246,000 175,000 71,000 Direct expensers Advertising Store supplies used Depreciation-Store equipment Total direct expenses 16,500 4,500 5,000 13, 000 4,200 3, 600 20,800 29,500 8,700 8,600 26,000 2 46, 800 Allocated expenses Sales salaries Rent expense Bad debts expense. 78,000 9,470 9,700 15,600 1,900 46,800 4,760 7,700 10,400 ,100 124,800 14,230 17,400 26,000 3,000 3,800 189,230 236,030 Office salary Insurance expense Miscellaneous office expenses Total allocated expenses 1,500 300 72,260 116,970 7,260 93,060 142,970 Total expenses Net income (loss) $ 32,030 (22,060)9,970 In analyzing whether to eliminate Department 200, management considers the following