E21-1A. Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2016 are as follows: Sales... Cost of sales. Gross profit. Direct expenses Common expenses Total expenses Net income (Loss). Total $950,000 634,000 $316,000 $144,000 123,000 $267.000 $ 49,000 Departments 1-3 $800,000 520.000 $280,000 $120,000 105,000 $225,000 $ 55,000 Department 4 $150,000 114,000 $ 36,000 $ 24,000 18,000 $ 42,000 $ (6,000) a. Required Calculate the gross profit percentage for departments 13 combined and for department 4. b. What effect would elimination of department 4 have had on total firm net income? (Ignore the effect of income tax.)