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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $838,500 410,000 Department B $451,500 293,475 Sales Cost of
Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $838,500 410,000 Department B $451,500 293,475 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance 119,000 18,500 23,000 15,500 6,900 86,000 10,600 27,500 13,500 5,400 The company also incurred the following indirect costs. Salaries Insurance Depreciation office expenses $31,000 7,200 14,800 45,000 Indirect costs are allocated as follows: salaries on the basis of sales, insurance and depreciation on the basis of square footage, and office expenses on the basis of number of employees. Additional information about the departments follows. Department . Square footage 32,200 13,800 Number of employees 77 33 B Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. 2. Should Department B be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the departmental contribution to overhead and the departmental net income for department A and Department B. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) VORTEX COMPANY Departmental Contribution Statements Department A Department B 0 0 Direct expenses Total direct expenses 0 0 Allocated indirect expenses 0 Total indirect expenses Operating income (loss) $ 0 $ 0 Required 1 Required 2 Should Department B be eliminated? Should Department B be eliminated
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