Performance Measurement Jansen Company reports the following for its ski departm

Question

Performance Measurement

Jansen Company reports the following for its ski department for the year 2015. All of its costs are direct except as noted. Sales Cost of goods sold Salaries Utilities Depreciation Office expenses S 600,000 445,000 110,000 15,100 44,600 22,800 ($25,400 is indirect) ($5,500 is indirect) ($17,700 is indirect) (all indirect) 1. Prepare a departmental income statement for 2015. JANSEN COMPANY Departmental Income Statement Ski Department For Year Ended December 31, 2015 Ski Dept 0

Explanation / Answer

Answer: 1

Departmental Income Statement for 2015

Answer: 2

Departmental Contribution to overhead report 2015

Answer: 3

No

Since Ski Department is contributing 33900 to Overheads of the Company, Jansen Should not eliminate the ski department.

Sales 600000 Less: Cost of Goods sold -445000 Cost 155000 Less: Salaries -110000 Less: Utilities: (15100-5500) -15100 Less: Depreciation: (44600-17700) -44600 Office Expenses -22800 Net Income -37500

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