https/ 4- Part B (Ch. 10-12) Help Save & ExitSubemit Required information The fo

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https/ 4- Part B (Ch. 10-12) Help Save & ExitSubemit Required information The following information applies to the questions displayed below Elegant Decor C losses or low profits for several years. The company's 2017 departmental income statements shows the following. s management is trying to decide whether to eliminate For Year Ended December 31, 2017 Cost of goods sold 447,000 $283,00e 73e,e00 268,00 71,000 Advertising Store supplies used Depreciation-Store equipment Total direct expenses 14,000 4,600 .300 21,980 31,000 9,680 8, 380 17,000 5,eee 27,000 83,200 14,150 16,800 1,280 3,080 3,680 151,950 Sales salaries 52,000 9,580 18,720 1,980 2,100 93,630 31,200 4,740 7,300 12,480 1,100 Bad debts expense Total allocated expenses Net income (loss) 58,3709220) $ 49,15 Prex5 7of 13 Next to search

Explanation / Answer

Analysis of Expenses under Elimination of Department 200 Total Expenses Eliminated Expenses Continuing Expenses Cost of goods sold 480000 212000 268000 Direct expenses Advertising 31,000 14,000 17,000 Store supplies used 9,600 4,600 5,000 Depreciation—Store equipment 8,300 8,300 Allocated expenses Sales salaries 83,200 31,200 52,000 Rent expense 14,150 14,150 Bad debts expense 16,800 7,300 9,500 Office salary 31,200 15600(31200/2)refer point c 15600(31200/2) Insurance expense 3,000 715 (65% of 1100) 2285 (3000-715) Miscellaneous office expenses 3,600 240 (16% of 1500) 3360 (3600-240) Total expenses 6,80,850 285655 395195

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