Jansen Company reports the following for its ski department for the year 2017. 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)

(1) Prepare a departmental income statement for 2017

(2) Departmental contribution to overhead report for 2017.

(3) Based on these two performance reports, should Jansen eliminate the ski department?