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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $819,200 430,000 Department $450,000 299,520 Sales Cost of goods

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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $819,200 430,000 Department $450,000 299,520 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance 116.000 16,500 21,500 20,000 6,100 83,000 10,900 29.500 14,000 5,400 The company also incurred the following indirect costs. Salaries Insurance Depreciation office expenses $27,000 7,400 15,600 47,000 Indirect costs are allocated as follows: salarles 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 34,369 14,700 33 72 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. compree in question by emerng your answers in the row. 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 Department B Direct expenses Total direct expenses Allocated indirect expenses Total indirect expenses Operating income foss) Required 2 > TULUI CONDUH lo overhead and the departmental 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?

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