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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $812,800 445,000 Department B $457,200 297,180 Sales Cost of

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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $812,800 445,000 Department B $457,200 297,180 Sales Cost of goods sold Direct expenses Salaries Insurance Utilities Depreciation Maintenance 120,000 19,000 23,500 19,000 6,100 85,000 10.5ee 24,500 13,000 5,100 The company also incurred the following indirect costs. Salaries Insurance Depreciation office expenses $31,000 7,600 15,800 42,000 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 employees Square footage 35,000 15,000 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 A Department B ces Direct expenses Total direct expenses Allocated indirect expenses Total Indirect expenses Operating income (loss) 2. Should Department B be eliminated? Yes No

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