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3 Problem 13-26A (Algo) Eliminating a segment LO 13-4 5 pots Munoz Boot Co sells men's, women's, and children's boots. For each type of boot

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3 Problem 13-26A (Algo) Eliminating a segment LO 13-4 5 pots Munoz 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. 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. Book Men's Department $ 680,000 (270, 500) 400, 500 (62,000) (116,200) (1,000) (14,000) $ 106,300 Sales Cost of goods sold Gross margin Department manager's salary Sales commissions Hent on store lease Store utilities Het incon (loss) Women's Department $ 500,000 (100,400) 319,600 (51,000) (85,610) (11,000) (14,000) $ 138,000 children's Departsent $ 200,000 (101, 075) 98,125 (31,000) (2.900) (1,000) (14000) $(10,775) Print References Required . Calculate the contribution to profit Determine whether to eliminate the children's department b-1. Calculate the net income for the company as a whole with the children's department b-2. Confirm the conclusion you reached in Requirement aby preparing income statements for the company without the children's department c. Eliminating the children's department would increase space available to display men's and women's boots Suppose management estimates that a wider selection of adult boots would increase the store's net earnings by $42,000. Would this information affect the decision that you made in Requiremento? Complete this question by entering your answers in the tabs below. Required Required 01 Required 2 Required Calculate the contribution to profit Determine whether to minate the children w department Contribution to profit (s) should the charts ceperant ho dimirited? Complete this question by entering your answers in the tabs below. Required A Required B1 Required 02 Required Calculate the not income for the company as a whole with the children's department Not incorno (los) Complete this question by entering your answers in the tabs below. Required A Required 01 gulred B2 Required Confirm the conclusion you reached in Requiremant a by preparing income statements for the company without the children department Men's Women's Company Department Department Total Sales Cost of goods sold Gross margin Department manager's salary Sales commissions Ronton store loase Stores Not income (los)

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