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1 Required information The following information applies to the questions displayed below) Elegant Decor Company's management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company's 2017 departmental income statements shows the following ELEGANT DECOR COMPAINY Departmental Income Stateents For Year Ended December 31, 2817 HDept 100 Dept. 280 Coebined $444,000 $283,000 $727,880 Sales Cost of goods sold Gross profit Operating expenses 262,000278,000255,000 218,8685 182,8009o472,880 73,000 Direct expenses Advertising Store supplies used Depreciation-Store equipment Total direct expenses 27,000 7,680 7,500 42,180 16,00011,888 4,800 3,600 4.600EO 24,660 17,50 17,500 Allocated expenses 83,280 14,170 16,969 36,400 3,480 3,900 52,000 9,458 9,500 Sales salaries Rent expense Bad debts expense Office salary Insurance expense Miscellaneous office expenses Total allocated expenses 31,280 4,720 7,480 14,560 1,380 1,600 60,780 21,84014 2,100 2,38 121,79088 157,920 60,210 (5,280) 54,930 78,288 280,870 Total expenses Net income (loss) In analyzing whether to eliminate Department 200, management considers the following: $700 per week, or $36.400 per vear, and four sales clerks who each a. The company has one office worker who earns

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