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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $806,400 415,000 $453,600 294,540 Sales Cost of goods sold

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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $806,400 415,000 $453,600 294,540 Sales Cost of goods sold Direct expenses Salaries Insurance Utilities Depreciation Maintenance 115,000 19.500 23,000 15,500 5,500 86,000 10,300 25.000 12.000 5.00 The company also incurred the following indirect costs. Salaries Insurance Depreciation Office expenses $36,000 7,200 15.000 47.000 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 Number of onelovees Souare footage 32,200 13.00 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. (Do Salaries Insurance Depreciation Office expenses 15. 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 Number of employees Square footage 32,200 13,800 B 5600 Required: 1. 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 Department B Direct expenses VORTEX COMPANY Departmental Contribution Statements Department A Department B Direct expenses Total direct expenses Allocated indirect expenses Total indirect expenses Operating income (loss) Total direct expenses Allocated indirect expenses Total indirect expenses Operating income (loss) 2. Should Department B be eliminated? Yes No

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