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 2015 departmental income statements shows the following ELEGANT DECOR COMPANY Departmental Income Statements For Year Ended December 31, 2015 Sales Cost of goods sold Dept. 100 Dept. 200 Combined $443,000 $283,000 $ 726,000 266,000214,0p0480,000 Gross profit Operating expenses 177,000 69,000 246,000 Direct expenses Advertising Store supplies used Depreciation-Store equipment 16,500 6,000 4,200 12,500 29,000 11,700 7,100 5,700 2,900 Total direct expenses 26,700 21,100 47,800 Allocated expenses Sales salaries Rent expense Bad debts expense Office salary Insurance expense Miscellaneous office expenses 78,000 9,500 9,600 18,720 2,100 2,700 46,800 4,750 7,400 12,480 1,200 2,000 124,800 14,250 17000 31,200 3,300 4,700 . Total allocated expenses 120,620 74,630 95,730 $ 29,680 (26730) 195,250 243,050 2,950 Total expenses 147,320 Net income (loss) In analyzing whether to eliminate Department 200, management considers the following: a. The company has one office worker who earns $600o who each earn $600 per week, or $31.200 per year for each salesclerk