The Ski department reports sales of $$610,000$ and cost of goods sold of $$427,000.$ Its expenses follow.

Direct expenses Indirect expenses Service department expenses

Salaries $ $117,000$ Rent $ $14,300$ Office $ $26,800$

Depreciation $46,000$

$1.$ 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?