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

Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $ 800,000 475,000 Department B $450,000 292,500 Sales Cost of goods sold Direct expenses Salaries Insurance Utilities Depreciation Maintenance 117,000 12,000 24,500 15,500 6,500 85,000 10,200 27,500 13,500 5,000 The company also incurred the following indirect costs. Salaries Insurance Depreciation Office expenses $33,000 7,200 15,800 44,000 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 30,100 12,900 Number of employees 70 30 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 Direct expenses Total direct expenses Allocated indirect expenses Total indirect expenses Operating income (loss) 2. Should Department B be eliminated? Yes No