Jansen Company reports the following for its ski department for the year 2017. All of its...

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Jansen Company reports the following for its ski department for the year 2017. All of its costs are direct, except as noted S

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Jansen Company
Departmental Income statement-Ski Department
For the Year ebded December 31,2017
Sales		$ 6,00,000.00
Cost of goods sold		$ -4,40,000.00
Gross Margin			$ 1,60,000.00
Operating Expenses
Salaries		$ 1,13,000.00
Utilities		$ 16,100.00
Depreciation		$ 48,800.00
Office Expenses		$ 24,400.00
Total Expenses			$ 2,02,300.00
Operating Loss			$ -42,300.00

Jansen Company
Departmental Contribution to Overhead-Ski Department
For the Year Ended December 31st,2017
Sales		$ 6,00,000.00
Cost of goods sold		$ -4,40,000.00
Gross Margin			$ 1,60,000.00
Direct Expenses:
Salaries		$ 87,400.00
Utilities		$ 11,100.00
Depreciation		$ 31,200.00
Total Direct Expenses			$ 1,29,700.00
Contribution to Overhead			$ 30,300.00
Contribution to Overhead is $30300 to meet the indirect expenses so, SKI Department should not be eliminate.

Direct Expenses
Salaries	($113000-$25600)
Utilities	($16100-$5000)
Depreciation	($48800-$17600)

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