Check my work sells men's, women's, and children's boots. For each type of boot sold, t operates a separate department that has is own manager. The manager of the men's department has a sales staff of nine employees, the manager of the women's department has In r statements follow six employees, and the manager of the children's department has three employees. All departments are housed in a single store ecent years, the children's department has operated at a net loss and is expected to continue to do so. Last year's income Men's Nomen Children's Department $ 650,000 Sales Cost of goods sold Gross margin Department manager's salary Sales comnissions Rent on store lease Store utilities Net income (loss) $ 470,000 (268,000)(178,400) 291,600 (46,000) (80,600) (26,000) (9,000) s 130,000 $180,000 (99,375 80,625 (26,000) (30,400) (26,000) ,000 $(10,775) 382,000 (111,200) (26,000) 9,000) s 178, 800 Required a. Calculate the contribution margin. 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 a by 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 $37,000. Would this information affect the decision that you made in Requirement a? Required A Required B1 Required 82 Required C contribution margin. Determine whether to eliminate the children's department. (Negative amounts should be indicated by a minus sign.) Contribution to profit (loss) Should the children's department be eliminated? Required 81 Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required C | Calculate the net income for the company as a whole with the children's department. Net income (loss) Required A Required B2> Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required C Confirm the conclusion you reached in Requirement a by preparing income statements for the company wi department. Men's Women's Company Department Department Total Sales Cost of goods sold Gross margin Department manager's salary Sales commissions Rent on store lease Store utilities Net income (loss) Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required C boots. Suppose Eliminating the children's department would increase space available to display men's and women's management estimates that a wider selection of adult boots would increase the store's net earnings by $37,000. Would this information affect the decision that you made in Requirement a? ces Required B2
