The College Bookstore has employed Kay Barton as its new manager. In the past the income statement of the bookstore has shown only total revenue and operat¬

ing expenses. The new manager wants to introduce procedures for measuring gross profits for each of three departmental areas: textbooks, general books, and merchandise. Explain what changes in the accounting system will be required and what benefits Barton may expect to gain from the departmental informa¬

tion. LO5