Jansen Company reports the following for its ski department for the year 2017. All of its costs are direct, except as noted. Sales $ 615,000 Cost of goods sold 435,000 Salaries 111,000 ($25,200 is indirect) Utilities 16,300 ($5,300 is indirect) Depreciation 53,600 ($17,300 is indirect) Office expenses 26,600 (all indirect) 1. Prepare a departmental income statement for 2017. 2. & 3. Prepare a departmental contribution to overhead report for 2017. Based on these two performance reports, should Jansen eliminate the ski department?
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