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	$ 118,000	Rent	$ 15,100	Office	$ 21,400
Depreciation	44,600

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?