Selected information from the adjusted trial balance of Warmers Inc. as of December $31,20$X$1,$ follows:

Department A Department B Total

Merchandise Inventory, January $1$ $ $42,000$ $ $12,000$ $ $54,000$

Merchandise Inventory, December $3154,00010,70064,700$

Sales $493,200328,800822,000$

Sales Returns and Allowances $4,9323,2888,220$

Purchases $185,000100,000285,000$

Freight In $470470940$

Purchases Returns and Allowances $1,3504701,820$

Sales Salaries Expense $97,00047,000144,000$

Advertising Expense $14,7004,70019,400$

Store Supplies Expense $63023653$

Cash Short or Over $4383126$

Insurance Expense $14,700$

Rent Expense $33,000$

Utilities Expense $5,700$

Office Salaries Expense $37,000$

Other Office Expense $1,250$

Uncollectible Accounts Expense $4,700$

Depreciation Expense$$Furniture and Fixtures $5,700$

Depreciation Expense$$Office Equipment $470$

Interest Income $270$

Interest Expense $470$

$1.$ 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 $ $102,000$

Department B $68,000$

Total $ $170,000$

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

Department A $3,990$ square feet

Department B $1,710$ square feet

Total $5,700$ square feet

$3.$ Office Salaries Expense, Other Office Expenses, and Depreciation Expense$$Office 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 Expense$$Furniture and Fixtures: in proportion to cost of furniture and fixtures in each department. These costs are as follows.

Department A $ $30,550$

Department B $16,450$

Total $ $47,000$

Required:

Prepare a departmental income statement for the year ended December $31,20$X$1.$ The bases for allocating indirect expenses are given above.

Analyze:

Which department reports the higher return on net sales?