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Analyze Operational Changes Richmonds is a restore with eight departments, including a garden department that has been operating at a loss. The following Garden Department

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Analyze Operational Changes Richmonds is a restore with eight departments, including a garden department that has been operating at a loss. The following Garden Department All Other Departments income statement gives the latest year's operating results: 470.00 GOs prot Directemes a. Calculate the gross profit percentage for the garden department and for the other departments as a group Garden department 40 % All other departments 35 b. Suppose that the garden department were discontinued, the space occupied could be rented to an outside firm for $31,500 per year, and the common expenses of the firm would be reduced by $7.800. What effect would this action have on Richmond's net income?gnore income tax in your calculations) Richmond's net income would decrease by 5 c is estimated that if an addition 1.500 were spent on advertising prices in the garden center could be raised an average of 5 without a change in physical volume of products sold. What effect would this have on the operating results of the garden department Again ignore income tax in your calculations Use a negative sign to indicate a net loss answer otherwise do not use negative signs with your answers Garden Department Income Statement $ 17400 Gross profit

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