The Ski department reports sales of $610,000 and cost of goods sold of $427,000. Its expenses follow. Direct expenses: Salaries $ 117,000, Depreciation 45,600. Indirect expenses:Rent $ 14,400. Service department expenses: Office $ 26,400

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?