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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $825,600 410,000 Department B $464,400 301,860 Sales Cost of

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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $825,600 410,000 Department B $464,400 301,860 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance 119,000 10,000 24,000 19,000 6,200 87,000 10,600 26,000 13,500 6,000 The company also incurred the following indirect costs. Salaries Insurance Depreciation office expenses $28,000 6,400 14,400 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 Square footage 28,000 12,000 Number of employees 70 30 B 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 es Direct expenses Total direct expenses Allocated indirect expenses Total indirect expenses Operating income (loss) Required: 1 Required 2 >

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