Safarl File Edit View History Bookmarks Window Help Solved: Cobe Compa Cpt 23 HW Problem 23-6A Analysis of possible elimination of a department LO A1 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 2013 departmental income statement shows the following ELEGANT DECOR COMPANY Departmental Income Statements For Year Ended December 31, 2013 Dept. 200 Combined $436,000 $290,000 $726,000 Cost of goods sold 207,000 174,000 83,000 257000 Gross proft Operating expenses Direct expenses Advertising 17000 4,000 5,000 29,000 7.800 Store supplies usecd 3,800 Depreciation-Store equipment Toral direct expenses 26,000 19,100 45.00 Allocated expenses Sales salares Rent expense 65.000 9,440 9,900 Bad deots expense Office salary Insurance expense Miscellaneous office expenses 4,720 8,100 12,480 4360 18.000 31,200 3,100 174,460 219.560 37,440 Total allocated expenses 107.460 67000 Total expenses 133,460 Net income poss) s 40,540 (3100) In analyzing whether to elieminate Department 200, management considers the following a. The company has one office worker who eans $600 per week, or $31200 per year, and four sales clerks who each ean $500 per week or $26,000 per year for each salesclerk b. The full salaries of two salesclerks are charged to Department 100. The ful salary of one salesclerk is t 200. The salary of the fourth clerk, who hail time in both MacBook Air esc