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Perez 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.

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Perez 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. 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. Required a. Caiculate the contribution to profit. Determine whether to eliminate the childien's clepartment. 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 without the chidren's departiment. c. Eliminating the children's department would inciease 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 $43,000. Would this information affect the decision that you made in Requirement a

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