Niklos Boot Co. sells men's, women's, and children's boots. For each type of boot sold, itoperates 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 years income statements follow. Women's Children's Department Department 500,000 600,000 $120,000 Cost of goods sold 210,000 (250,000 70,000) Gross margin 290,000 350,000 50.000 Department managers 52,000 60,000 (24.000) salary (86,000) Sales commissions 98,000 8.000) Rent on 21.000 21.000 (21.000 Store lease Store utilities 4,000 4,000 4.000) Net income (oss) 127,000 167,000 (17.000) Required a-1. Calculate the contribution to profit of the children's department (Negative amounts should be indicated by a minus sign.) Contribution to profit (loss) 58,000 a 2. Should the children's department be eliminated? O Yes, No b-1. Calculate the net income for the company as the whole with the children's department. Net income (oss) 277,000 b-2. Prepare the income statement for the company as the whole without the children's department. (Sunk cost of Children's Department should be allocated equally between the remaining Men's Women's Company Department Department Total 500,000 600,000 $1,100,000 Cost of goods sold (210,000) (250,000) (460,000) 200.000 350.000 640.000 Gross margin Department manager's (52,000) (60,000) (112,000) Sales commissions (86,000) (98,000) (184,000) Rent on store lease Store utilities 152000 S 192000 S 34000 Net income (loss)