Selected information from the adjusted trial balance of Warmers Inc. as of December 31, 2019, follows:

	Department A			Department B			Total
Merchandise Inventory, January 1	$	47,000		$	17,000		$	64,000
Merchandise Inventory, December 31		43,000			11,200			54,200
Sales		578,900			248,100			827,000
Sales Returns and Allowances		5,789			2,481			8,270
Purchases		210,000			125,000			335,000
Freight In		520			520			1,040
Purchases Returns and Allowances		1,600			520			2,120
Sales Salaries Expense		102,000			52,000			154,000
Advertising Expense		15,200			5,200			20,400
Store Supplies Expense		680			22			702
Cash Short or Over		42			82			124
Insurance Expense								15,200
Rent Expense								38,000
Utilities Expense								6,200
Office Salaries Expense								42,000
Other Office Expense								1,500
Uncollectible Accounts Expense								5,200
Depreciation ExpenseFurniture and Fixtures								6,200
Depreciation ExpenseOffice Equipment								520
Interest Income								320
Interest Expense								520

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	$	154,000
Department B		66,000
Total	$	220,000

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

Department A	4,960	square feet
Department B	1,240	square feet
Total	6,200	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	$	28,600
Department B		23,400
Total	$	52,000

Required:

a. Prepare a departmental income statement for the year ended December 31, 2019. The bases for allocating indirect expenses are given above.

WARMERS INC.
Income Statement
Year Ended December 31, 2019
	Department A	Department B	Total
Operating revenues
			$0
			0
Net sales	$0	$0	$0
Cost of goods sold
			$0
			0
			0
			0
Delivered cost of purchases			$0
			0
Net delivered cost of purchases			$0
Total merchandise available for sale			$0
			0
Cost of goods sold			$0
	$0	$0	$0
Operating expenses
Direct expenses
			$0
			0
			0
			0
			0
Total direct expenses	$0	$0	$0
			$0
Indirect expenses
			$0
			0
			0
			0
			0
			0
			0
			0
			0
Total indirect expenses	$0	$0	$0
Net income from operations			$0
Other Income
Other Expense
			$0

b.

Which department reports the higher return on net sales?_________