Vortex Company operates a retail store with two departments. Information about those departments follows.

Department ADepartment B

Sales$838,500 $451,500

Cost of goods sold 440,000 293,475

Direct expenses

Salaries 115,000 83,000

Insurance 19,000 10,700

Utilities 22,000 28,500

Depreciation 15,500 13,500

Maintenance 6,200 5,300

The company also incurred the following indirect costs.

Salaries$31,000

Insurance7,200

Depreciation15,400

Office expenses41,000

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.

DepartmentSquare footageNumber of employees

A 30,800 84

B 13,200 36

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.)

2. Should Department B be eliminated?

Yes

No