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Vortex Company operates a retail store with two departments. Information about those departments follows Department A $819,209 435,000 Departments $460,80 299,520 Sales Cost of goods

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Vortex Company operates a retail store with two departments. Information about those departments follows Department A $819,209 435,000 Departments $460,80 299,520 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance 121,000 17,500 22,000 15,800 6,500 85,899 19,600 28,500 13,000 6.000 The company also incurred the following indirect costs. Salaries Insurance Depreciation office expenses $35,000 7,600 14,800 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 35,000 15,000 Number of employees 77 33 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. 2. Should Department be eliminated? Complete this question by entering your answers in the tabs below. 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.) Duplatit Dapartment Direct expenses Total direct expenses Allocated indirect expenses Total Indirect expenses Operating Income (oss) Salaries Insurance Depreciation office expenses $35,000 2.600 14,800 48,00 Indirect costs are allocated as follows: salaries on the basis of sales, insurance and depreciation on the basis of square footage, a office expenses on the basis of number of employees. Additional information about the departments follows. Department Square footage Number of employees 35.000 77 15,000 33 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?

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