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 $ 437,000 $289,000 $726,000 477,000 266,000 211,000 171,000 Gross profit Operating expenses 78,000 249,000 Direct expenses Advertising Store supplies used Depreciation-Store 16,500 6,000 13,000 5,400 2,900 29,500 11,400 7,300 4,400 equipment Total direct expenses 26,900 21,300 48,200 Allocated expenses Sales salaries Rent expense Bad debts expense Office salary Insurance expense Miscellaneous office 52,000 9,470 9,700 21,840 2,100 31,200 4,720 7,800 14,560 1,300 83,200 14190 17,500 36,400 3,400 2,600 1,900 4,500 expenses 159,190 Total allocated expenses Total expenses Net income (loss) 61,480 82,780 46,390 $(4,780) $ 41,610 97,710 124,610 207,390