Penn Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2016 are as follows:

	Total	Departments 1-3	Department 4
Sales	$1,052,000	$900,000	$152,000
Cost of sales	654,000	540,000	114,000
Gross profit	$398,000	$360,000	$38,000
Direct expenses	$177,000	$150,000	$27,000
Common expenses	140,000	120,000	20,000
Total expenses	317,000	$270,000	$47,000
Net income (loss)	$81,000	$90,000	$(9,000)

1. Calculate the gross profit percentage for departments 1-3 combined and for department 4.
2. What effect would elimination of department 4 have had on total firm net income? (Ignore the effect of income tax.)