Jordan Boot Co. sells mens, womens, and childrens boots. For each type of boot sold, it operates a separate department that has its own manager. The manager of the mens department has a sales staff of nine employees, the manager of the womens department has six employees, and the manager of the childrens department has three employees. 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 $ 670,000 $ 490,000 $ 190,000 Cost of goods sold (270,000 ) (180,000 ) (101,375 ) Gross margin 400,000 310,000 88,625 Department managers salary (61,000 ) (50,000 ) (30,000 ) Sales commissions (115,200 ) (84,600 ) (32,400 ) Rent on store lease (30,000 ) (30,000 ) (30,000 ) Store utilities (13,000 ) (13,000 ) (13,000 ) Net income (loss) $ 180,800 $ 132,400 $ (16,775 ) 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 as a whole with and 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 $41,000. Would this information affect the decision that you made in Requirement a?