Finch Boot Co. sells men's, women's, and children's boots. For each type of boot sold, it operates a separate department that has its own manager. The manager of the men's department has a sales staff of nine employees, the manager of the women's department has six employees, and the manager of the children's department has three employees. All departments are housed in a single store. In recent years, the children's department has operated at a net loss and is expected to continue to do so. Last year's income statements follow: Sales Cost of goods sold Gross margin Department manager's salary Sales commissions Rent on store lease Store utilities. Net income (loss) Required Men's Department $ 660,000 (268,500) 391,500 Women's Department Children's Department $480,000 $170,000 (178,800) (99,875) 301,200 70,125 (58,000) (47,000) (27,000) (112,200) (81,600) (30,900) (27,000) (27,000) (27,000) (10,000) (10,000) (10,000) $184,300 $ 135,600 $(24,775) 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 as a whole with and 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 $38,000. Would this information affect the decision that you made in Requirement a