Whether to Discontinue a Department Williams and Lloyd Company is trying to decide whether to discontinue department 8. Ope company's three departments and for the entire operation are as follows: rating results for the year just ended for each of the Dept. A Dept. B Dept. CTotal Net sales Cost of goods sold Gross profit Direct operating expenses Departmental direct operating margin Indirect operating expenses Operating income (loss) Required: $378,230 $260.740 $293,990 $932,960 204,370 139,180 163,470 507,020 $173,860 $121,560 $130,520 $425,940 99,190 90,870 80,610 270,670 $155,270 43,910 35,86040,010 119,780 $30,760$(5,170) $9,900 $35,490 $74,670 $30,690 $49,910 1. Prepare an additional column that combines departments A and C only. Use a minus sign to indicate an operating loss. Williams and Lloyd Company Dept. A Dept. B Dept. CTotal Depts. A & C Only Net sales Cost of goods sold Gross profit Direct operating expenses Departmental direct operating margin s ] s I-- L- -) s Indirect operating expenses Operating income (loss) 2. Based on the data given in the part 1, which of the following is true