Not complete Marked out of 11.00 Analyze Operational Changes Richmond's is a retail store with eight departments, including a garden department that has been operating at a loss. The following condensed income statement gives the latest year's operating results: Sales Cost of sales Gross profit Direct expenses Common expenses Garden Department 168.000 100.800 67.200 54,000 24,000 78,000 $(10,800) All other Departments $1,200,000 780,000 420,000 136,500 156,000 292,500 $127.500 Total expenses Net income (Loss) a. Calculate the gross profit percentage for the garden department and for the other departments as a group. Garden department 0 96 All other departments b. Suppose that if the garden department were discontinued, the space occupied could be rented to an outside firm for $9,000 per year, and the common expenses of the firm would be reduced by $2,200. What effect would this action have on Richmond's net income? (ignore income tax in your calculations.) Richmond's net income would by s 0 c. It is estimated that if an additional $3,000 were spent on advertising, prices in the garden center could be raised an average of 5% without a change in physical volume of products sold. What effect would this have on the operating results of the garden department? (Again, ignore income tax in your calculations.) Use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers