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Vortex Company operates a retail store with two departments, Information about those departments follows. Department A $825,500 425,000 Department B $444,500 288,925 Sales Cost of

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Vortex Company operates a retail store with two departments, Information about those departments follows. Department A $825,500 425,000 Department B $444,500 288,925 Sales Cost of goods sold Direct expenses Salaries Insurance Utilities Depreciation Maintenance 123,000 23,500 20,000 17.500 6,400 85,000 10,800 25,500 12,500 5,900 The company also incurred the following indirect costs. Salaries Insurance Depreciation Office expenses $28.000 7,200 15,800 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 31,500 13,500 70 30 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department 3. 2. Should Department B be eliminated? 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 Department B Direct expenses Total direct expenses Allocated indirect expenses Total indirect expenses Operating income (los) 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 Departments Direct expenses Advertising Cost of goods sold Departmental contributions to overhead Depreciation Insurance Total indirect expenses Operating income (lossy 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 Insurance Maintenance Office Rent expense Salaries Total indirect expenses Operating income (loss) Department Square footage 31,500 13,500 Number of employees 70 30 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department 8 2. Should Department B be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should Department B be eliminated? Should Department B be eliminated? Yes No

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