Problem 13-26A (Algo) Eliminating a segment LO 13.4 Western 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. Men's Department $ 780,000 (275,500 424,500 (72,000) (126,200 (41.060) (24,600) $ 161,380 Sales Cost ot goods sold Gross margin Department wanager's salary Sales comissions Rent on store lease Store utilities Net Income (loss) Women's Departitent $ 500,000 (184,400) 315,600 (61,600) (95,600 (41,000) (24,000) $ 94,000 Children's Department $ 230, eee (106,875 123, 125 (41,820) (37,900) (41.000) 24.eee) $ (20,775) Required a Calculate the contribution to profit Determine whether to eliminate the children's 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 without the children's department c. Ellminating the children's department would increase 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 $52.000. Would this information affect the decision that you made in Requiremento? Complete this question by entering your answers in the tabs below. RUN Required : Required 32 Required Calculate the contribution to profit. Determine whether to eliminate the children's department Contribution to profit doss) Should the children department be mine? Western 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. Men's Women's Children's Department Department Department Sales $ 700,000 $ 500.000 $ 230,000 Cost of goods sold (275,500) (184,400 (106,875) Gross margin 424,500 315, Gee 123, 125 Department manager's salary (72,000) (61.000) (41,000) Sales commissions (126,200) (95,600 (37.900) Rent on store lease (41,600) (41,090) (41,000) Store utilities 24,000 (24.600) (24,009) Net Income (less) $ 161,300 $ 94,000 $ (20,775) Required a. Calculate the contribution to profit. Determine whether to eliminate the children's 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 aby preparing Income statements for the company without the children's department c. Ellminating the children's department would increase space available to display men's and women's boots Suppose management estimates that a wder selection of adult boots would increase the store's net eamings by 552,000. Would this information affect the decision that you made th Requirement ? Complete this question by entering your answers in the tabs below, De PI Reed 12 Required Calculate the net income for the company as a whole with the children's department Netcomes Western 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. Al 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 Sales Cost of goods sold Gross margin Department Manager's salary Sales commissions Rent on store lease Store utilities Net Inco (Loss) Men's Departnet $ 700,000 (275,500 424,500 (72,600 (126,200 (41,000 (24,000) $ 161,100 Women's Department $ 500.000 (184,400) 315,600 (61,000) (95,600 (41,000 (24,000 $94.000 Children's Department $ 230,00 (106,875) 123, 125 (41,600 7,9ee) (41,000) 24.000) 5 (20,775) Required a Calculate the contribution to profit Determine whether to eliminate the children's department b-1. Calculate the net income for the company as a whole with the children's department 0-2 Confirm the conclusion you reached in Requirement a by preparing Income statements for the company without the children's department Eliminang the children's department would increase space available to display men's and women's boots Suppose management estimates that a wider selection of adut boots would increase the store's net earnings by $52,000. Would this information affect the decision that you made in Requirement ? Complete this question by entering your answers in the tabs below. Requir: Required Required Confirm the conclusion you reachelin Requirementa by preparing income statements for the company without the children's department Mens Women's Company Department Department Total S Cost of goods sold Western Boot Co sells men's, women's, and children's boots. For each type of boot sold. It operates a separate department that has nes 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. Sales Cost of goods sold Gross margin Department manager's salary Sales comissions Rent on store lease Store utilities Net Income (Loss) Men's Department $700,000 275,500 424,500 (72.000 (126,200 (41,000 24,000 $ 161,300 Women's Department $ 500,000 (184,400 315, Gee (61.000) (95, Gee) (41,000) (24,000) $ 94,000 Children's Departent $ 230,000 (106,875) 123, 125 (41,000 (27,900) (41,000) (24.000 $ (20,775) Required a Calculate the contribution to profit Determine whether to eliminate the children's 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 without the children's department c. Eliminating the children's department would increase 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 $52.000 Would this information affect the decision that you made in Requiremento? Complete this question by entering your answers in the tabs below. Required Dequitat gured B2 en Eliminating the children's department would increase space wailable to display men's and women's boots. Suppose management estimates that a wider selection of adult boots would increase the stores net earnings by 352.000. Would this information affect the decision that you made in Requirement a Wat the decision made in Requirement betected? Required 2