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Analyze Operational Changes The management of Manchester's Department Store is concerned about the operation of its sporting goods department, which has not been very
Analyze Operational Changes The management of Manchester's Department Store is concerned about the operation of its sporting goods department, which has not been very successful. The following condensed income statement gives the latest year's results: Sporting Goods Department All Other Departments Sales Cost ofgoods sold Gross profit Direct expenses Indirectexpenses Total expenses Net income (Loss) $1,200,000 $6,000,000 900,000 3,900,000 300,000 2,100,000 168,700 840,000 120,000 600,000 288,700 $11,300 1,440,000 $660,000 a. Calculate the gross profit percentage for the sporting goods department and for the other departments as a group. Sporting goods department % All other departments %
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