# Question

Jansen Company reports the following for its ski department for the year 2015. All of its costs are direct, except as noted.
Sales . . . . . . . . . . . . . . . . . . . . .\$605,000
Cost of goods sold. . . . . . . . . . 425,000
Salaries . . . . . . . . . . . . . . . . . . . 112,000 (\$15,000 is indirect)
Utilities. . . . . . . . . . . . . . . . . . . 14,000 (\$3,000 is indirect)
Depreciation . . . . . . . . . . . . . . 42,000 (\$10,000 is indirect)
Office expenses . . . . . . . . . . . . 20,000 (all indirect)
Prepare a
(1) Departmental income statement for 2015
(2) Departmental contribution to overhead report for 2015.
(3) Based on these two performance reports, should Jansen eliminate the ski department?

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