The Ski department reports sales of $$605,000$ and cost of goods sold of $$423,500.$ Its expenses follow.

Direct expenses Indirect expenses Service department expenses

Salaries $ $117,000$ Rent $ $16,800$ Office $ $23,200$

Depreciation $54,600$

$1.$ For the Ski department only, prepare a departmental income statement.

$2.$ & $3.$ For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated?