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Vortex Company operates a retail store with two departments. Information about those departments follows. Department $819,000 485.000 Department B $441,000 286,650 Sales Cost of goods

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Vortex Company operates a retail store with two departments. Information about those departments follows. Department $819,000 485.000 Department B $441,000 286,650 Sales Cost of goods sold Direct expenses Salaries Insurance Utilities Depreciation Maintenance 121.000 14,500 23,500 15,000 87.000 10.400 24.000 14.000 5,900 6.600 The company also incurred the following indirect costs. Salaries Insurance Depreciation office expenses $28,000 7.000 15,200 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. Department Number of employees s quare footage 33,600 14,400 Required: 1. Determine the departmental contribution to overhead and the departmental net income for department And Department B. 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 fo (Do not round Intermediate calculations. Round your final answers to nearest whole dollar VORTEX COMPANY Departmental Contribution Statements Department A Department B Sales $ 819,000 $ 441,000 Cost of goods sold 485,000 286,650 Gross profit 334,000 154,350 Direct expenses Salaries 121,000 87,000 Insurance 14,500 Utilities 23,500 24,000 Depreciation 15,000 14,000 Maintenance 6,600 5,900 10,400 Total direct expenses 180,600 141,300 18,200 9,800 Allocated indirect expenses Salaries Insurance Depreciation Office 18.200 Total indirect expenses Operating income (loss) 9,800 (9,800) $ (18,200) $ Required 2 >

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