General chemical company (gcc) manufactures two products as part of a joint process: a1 and b1. joint costs up to the split-off point total $22,000. the joint costs are allocated to a1 and b1 in proportion to their relative sales values. at the split-off point, product a1 can be sold for $42,000, whereas product b1 can be sold for $63,000. product a1 can be processed further to make product a2, at an incremental cost of $38,000. a2 can be sold for $85,000. product b1 can be processed further to make product b2, at an incremental cost of $48,000. b2 can be sold for $95,000. the net change in operating income resulting from a decision to manufacture product b2 is:

Vortex company operates a retail store with two departments. information about those departments follows. department a department b sales $ 800,000 $ 450,000 cost of goods sold 497,000 291,000 direct expenses salaries 125,000 88,000 insurance 20,000 10,000 utilities 24,000 14,000 depreciation 21,000 12,000 maintenance 7,000 5,000 the company also incurred the following indirect costs. salaries $36,000 insurance 6,000 depreciation 15,000 office expenses 50,000 indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. additional information about the departments follows. department square footage number of employees a 28,000 75 b 12,000 50 required: 1. determine the departmental contribution to overhead and the departmental net income for department a and department b.