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Vortex Company operates a retail store with two departments. Information about those departments follows. 2 Department $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. 2 Department $825,500 425,000 Department B $444,500 288,925 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance -47/7 116,000 13,500 20.000 16,500 6,800 81,000 10,700 25,000 12,000 5,600 The company also incurred the following Indirect costs. Salarien Insurance Depreciation office expenses $34,000 6,400 14,200 45,000 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. Departent square footage Number of employees 12,200 77 13,800 33 35 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department 2. Should Department B be eliminated? Complete this question by entering your answers in the tabs below. ICULA Required 1 Required 2 Determine the departmental contribution to overhead and the departmental net income for d (Do not round Intermediate calculations. Round your final answers to nearest whole dollar.) VORTEX COMPANY Departmental Contribution Statements Department A Department B 0 0 Direct expenses Total direct expenses 0 Allocated indirect expenses Total direct expenses Operating incomo loss) 0 05 $ 0 Required 2 > 000 80 % A * * & 7 8 ON answers in the tabs below. Required 1 Required 2 Should Department B be eliminated? Should Department B be eliminated? Required 2 Yes No

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