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

	Department A			Department B
Sales	$	825,500		$	444,500
Cost of goods sold		465,000			288,925
Direct expenses
Salaries		124,000			85,000
Insurance		15,000			10,400
Utilities		24,000			24,000
Depreciation		19,000			13,000
Maintenance		6,300			5,700

The company also incurred the following indirect costs.

Salaries	$33,000
Insurance	7,000
Depreciation	14,400
Office expenses	48,000

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		29,400			66
B		12,600			44

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.)

2. Should Department B be eliminated?

• Yes

• No

VORTEX COMPANY Departmental Contribution Statements Department A Department B Direct expenses Total direct expenses Allocated indirect expenses Total indirect expenses Operating income (loss)