Jansen Company reports the following for its ski department for the year 2015. All of its costs ae direct, except as noted.
|
Sales
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$ 605.000
|
|
|
Cost of goods sold
|
425
|
|
|
Salaries
|
112
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(515.000 is indirect)
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|
Utilities
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14
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(53.000 is indirect)
|
|
Depreciation
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42
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(510.000 is indirect)
|
|
Office expenses
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20
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(all indirect)
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1. Prepare a departmental income statement for 2015.
2. Prepare a departmental contribution to overhead report for 2015.
3. Based on these two performance reports. should Jansen eliminate the ski department?