Vortex Company operates a retail store with two departments. Information about those departments follows.

	Department A			Department B
Sales	$	832,000		$	468,000
Cost of goods sold		485,000			304,200
Direct expenses:
Salaries		116,000			81,000
Insurance		15,500			10,300
Utilities		24,500			26,000
Depreciation		17,500			12,500
Maintenance		6,200			5,300

The company also incurred the following indirect costs.

Salaries	$28,000
Insurance	7,200
Depreciation	15,000
Office expenses	46,000

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			Number of employees
A		33,600			77
B		14,400			33

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?

Yes or No?

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 0 Total indirect expenses Operating income (loss) $ 0 $ 0