Baird Boot Co. sells mens, womens, and childrens 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 childrens department has operated at a net loss and is expected to continue to do so. Last years income statements follow. Mens Department Womens Department Childrens Department Sales $ 620,000 $ 440,000 $ 160,000 Cost of goods sold (266,500 ) (177,200 ) (97,875 ) Gross margin 353,500 262,800 62,125 Department managers salary (54,000 ) (43,000 ) (23,000 ) Sales commissions (108,200 ) (77,600 ) (28,900 ) Rent on store lease (23,000 ) (23,000 ) (23,000 ) Store utilities (6,000 ) (6,000 ) (6,000 ) Net income (loss) $ 162,300 $ 113,200 $ (18,775 ) Required a. Calculate the contribution to profit. Determine whether to eliminate the childrens 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 a by preparing income statements for the company without the childrens department. c. Eliminating the childrens department would increase space available to display mens and womens boots. Suppose management estimates that a wider selection of adult boots would increase the stores net earnings by $34,000. Would this information affect the decision that you made in Requirement a?

Complete this question by entering your answers in the tabs below. Calculate the contribution to profit. Determine whether to eliminate the children's department. Complete this question by entering your answers in the tabs below. Calculate the net income for the company as a whole with the children's department. Complete this question by entering your answers in the tabs below. Confirm the conclusion you reached in Requirement a by preparing income statements for the company without the children's department. Complete this question by entering your answers in the tabs below. 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 $34,000. Would this information affect the decision that you made in Requirement a