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Vortex Company operates a retail store with two departments. Information about those departments follows. Department Department B Sales $832,000 Cost of goods sold $448,000 450,000

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Vortex Company operates a retail store with two departments. Information about those departments follows. Department Department B Sales $832,000 Cost of goods sold $448,000 450,000 291,200 Direct expenses: Salaries Insurance 116,000 82,000 15,000 10,200 Utilities 25,000 29,000 Depreciation 17,000 13,000 Maintenance 6,880 5,400 The company also incurred the following indirect costs. Salaries Insurance Depreciation office expenses $35,000 6,690 14,600 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 70 12,900 30 30, 100 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department 2. Should Department B be eliminated? . 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 Direct expenses Total direct expenses (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) 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 Should Department B be eliminated? Should Department B be eliminated? (Required 1

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