The Ski department reports sales of $605,000 and cost of goods sold of $425,000. Its expenses follow.

For the Ski department only, prepare a 

(1) Departmental income statement and 

(2) Departmental contribution to overhead report. 

(3) Based on these two reports, should the Ski department be eliminated?

Transcribed Image Text:

Direct expenses Indirect expenses Service department expenses Salaries..... $112,000 Rent $14,000 Office ... $20,000 Depreciation... 42,000