The Ski department reports sales of $610,000 and cost of goods sold of $427,000. Its...

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Accounting

The Ski department reports sales of $610,000 and cost of goods sold of $427,000. Its expenses follow.
Direct expenses Indirect expenses Service department expenses
Salaries $ 117,000 Rent $ 14,300 Office $ 26,800
Depreciation 46,000
1. For the Ski department only, prepare a departmental income statement.
2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated?

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