Star Manufacturing Has Departments a and B with Departmental Income

Multiple Choice

Star Manufacturing has departments A and B with departmental income statements as follows.
$$\begin{array} { | l | r | r | } \hline & \text { Department A } & \text { Department B } \\\hline \text { Net sales } & \$ 3 5 0 0 0 & \$ 2 5 0 0 0 \\\hline \text { Cost of sales } & 14000 & 11000 \\\hline \text { Other experses } & 6500 & 15500 \\\hline \text { Profit (Loss) } & \$ 14500 & ( \$ 1500 ) \\\hline\end{array}$$
Star Manufacturing is considering eliminating Department B. Of the total 'other expenses' for the two departments of $22 000, $16 000 are fixed general overhead expenses and the rest are variable expenses based on 10% of sales. What is the present departmental contribution of Department B?

A) ($1 500)
B) $8 000
C) $11 500
D) $14 000