Sadar Company operates a store with two departments: videos and music. Information about those departments follows. Sales Cost of goods sold Direct expenses Salaries Maintenance Utilities Insurance Videos Department Music Department $ 377,000 $ 273,000 320,000 175,000 37,500 28,000 11,000 10,000 5,000 4,500 4,200 3,700 The company also incurred the following indirect costs. Advertising $ 15,000 Salaries 27,000 Office expenses 3,200 Indirect costs are allocated as follows: advertising on the basis of sales; salaries on the basis of number of employees; and office expenses on the basis of square footage. Additional information about the department follows. Required 1) 2) Department Videos Music Square footage # of employees 5,000 3 3,000 2 For each department, determine the departmental contribution to overhead and the departmental net income. Should the video department be eliminated? Explain. Check: (1) Music department net income, $33,500