13-24,25.26 &29 Problem 13-26 Eliminating a segment LO 13-4 Fanning Boot Co. sells men's, women's, and children's boots. For each type of boot sold, it operates a separate department that has its own manager. The manager of the men's department has a sales staff of nine employees, the manager of the women's department has six employees, and the manager of the children's department has three employees. All departments are housed in a single store In recent years, the children's department has operated at a net loss and is expected to continue to do so. Last year's income statements follow Men' women Children. Sales Cost of goods sold Gross margin Departnent 650,000 (268,000) S 470,000 (178, 400) 291, 600 (46,000) t80, 600) (26, 000) $180, 000 (99,375) 80, 625 (26, 000) (30, 400) 126,000) 382, 000 (57.000) Beisrsons Sales comi 10n Rent on store lease Store utilities (111.200) (26, 000) (9,000) -130,000 (9,000 Net income (loaa) 170,eoD (10,775) Required o. Calculate the contribution margin. Determine whether to eliminate the children's department b-1. Calculate the net income for the company as a whole b-2. Confirm with the children's department the conclusion you reached in Requirement a by preparing income statements for the company without the children's department c Eliminating the children's department would crease space available to displaymen's and women's boots. Suppo of adult boots would increase the store's net eamings by $37000 Would this information affect se management the decision that you made in Requirement a? Complete this question by entering your answers in the tabs below Required ARequired B1 Required B2 Required C Calculate the contribution margin, ndicated by a minus sign.) Determine whether to eliminate the children's department. (Negative amounts should be Contribution to proft (loss) Should the children's department be eliminated