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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $819,200 425,000 Department B $460,800 299,520 Sales Cost of

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Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $819,200 425,000 Department B $460,800 299,520 Sales Cost of goods sold Direct expenses Salaries Insurance Utilities Depreciation Maintenance 118,000 11,500 25,000 20,000 6,60e 86,000 10,100 25,000 12,500 5,000 The company also incurred the following indirect costs. Salaries Insurance Depreciation Office expenses $29.000 6,600 14,600 47.000 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 Number of employees Square footage 31.500 13,500 Required: 1. 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 0 0 Allocated indirect expenses - Total indirect expenses Operating income (loss) 0 $ 2. Should Department B be eliminated? Yes No

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