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Vortex Company operates a retail store with two departments. Information about those departments follows. Department $838,500 455,000 Department B $451,500 293,475 Sales Cost of goods

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Vortex Company operates a retail store with two departments. Information about those departments follows. Department $838,500 455,000 Department B $451,500 293,475 Sales Cost of goods sold Direct expenses Salarien Insurance Utilities Depreciation Maintenance 116,000 17,000 23,000 16,500 6,300 84,000 10,700 25,000 14,000 5,400 The company also incurred the following indirect costs. Salarien Insurance Depreciation Office expenses $ 26,000 6,200 15,400 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 29,400 12,600 A 3 70 30 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department E 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 Sales Cost of goods sold Gross profit Direct expenses Salaries Depreciation 0 0 Insurance Insurance Utilities 0 0 Maintenance Total direct expenses Departmental contributions to overhead Allocated indirect expenses Salaries Office Insurance Depreciation Total indirect expenses Operating income (loss) 0 0 $ $ 0 $ 0

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