Return to question 4 Vortex Company operates a retail store with two departments. Information about those departments follows. 2.16 points Department A $819,000 450,000 Department B $441,000 286,650 Sales Cost of goods sold Direct expenses: Salaries Insurance Utilities Depreciation Maintenance 120,000 14,000 22,500 15,500 6,400 85,000 10,800 29,500 13,500 5,300 The company also incurred the following indirect costs. Salaries Insurance Depreciation Office expenses $34,000 6,800 15,400 49,000 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. Department Square footage 29,400 12,600 Number of employees 70 30 B Required: 1. Determine the departmental contribution to overhead and the departmental net income for department A and Department B. 2. Should Department B be eliminated? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) VORTEX COMPANY Departmental Contribution Statements Department Department B Sales $ 819,000 $ 441,000 Cost of goods sold 480,000 286,650 Gross profit 339,000 154,350 Direct expenses Salaries 123,000 $ 87,000 Insurance 13,000 10,200 Utilities 21,000 24,000 X Depreciation 18,000 12,000 Maintenance 6,500 59,000 181,500 157,500 192,200 15,250 Total direct expenses Departmental contributions to overhead Allocated indirect expenses Salaries Insurance Depreciation 22,750 5,180 11,060 24,600 12,250 2,220 4,740 X 16,400 Office Total indirect expenses Operating income (loss) 63,590 93,910 35,610 (20,360) $ $