Selected information from the adjusted trial balance of Warmers Inc. as of December 31, 20X1, follows:

	Department A			Department B			Total
Merchandise Inventory, January 1	$	54,000		$	24,000		$	78,000
Merchandise Inventory, December 31		50,000			11,900			61,900
Sales		500,400			333,600			834,000
Sales Returns and Allowances		5,004			3,336			8,340
Purchases		245,000			160,000			405,000
Freight In		590			590			1,180
Purchases Returns and Allowances		1,950			590			2,540
Sales Salaries Expense		109,000			59,000			168,000
Advertising Expense		15,900			5,900			21,800
Store Supplies Expense		750			24			774
Cash Short or Over		44			84			128
Insurance Expense								15,900
Rent Expense								45,000
Utilities Expense								6,900
Office Salaries Expense								49,000
Other Office Expense								1,850
Uncollectible Accounts Expense								5,900
Depreciation ExpenseFurniture and Fixtures								6,900
Depreciation ExpenseOffice Equipment								590
Interest Income								390
Interest Expense								590

1. Insurance Expense: in proportion to the total of the furniture and fixtures (the gross assets before depreciation) and the ending inventory in the departments. These totals are as follows:

Department A	$	188,500
Department B		101,500
Total	$	290,000

2. Rent Expense and Utilities Expense: on the basis of floor space occupied, as follows:

Department A	5,175	square feet
Department B	1,725	square feet
Total	6,900	square feet

3. Office Salaries Expense, Other Office Expenses, and Depreciation ExpenseOffice Equipment: on the basis of the gross sales in each department.

4. Uncollectible Accounts Expense: on the basis of net sales in each department.

5. Depreciation ExpenseFurniture and Fixtures: in proportion to cost of furniture and fixtures in each department. These costs are as follows.

Department A	$	35,400
Department B		23,600
Total	$	59,000

Required: Prepare a departmental income statement for the year ended December 31, 20X1. The bases for allocating indirect expenses are given above. Analyze: Which department reports the higher return on net sales?