Problem 13-26A (Algo) Eliminating a segment LO 13-4 Zachary Boot Co sells men's, women's, and children's boots. For each type of boot sold, it operates a separate department that has own manager. All departments are housed in a single store. In recent years, the children's department has operated at a net loss and 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 Income (loss Men's Departient 5 690,000 (275.000 415,000 (71.000) (125,200) (40,000 (23.000 $ 155,800 Women's Department $.490,000 (184,000) 306,000 (60,000) (94,600) (49,803) 23,000 $ 88,400 Children's Department $ 230,000 (106,375) 123,625 (40,000) (37,400) (40,000) (23,000) $ (16,775) 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 managemen estimates that a wider selection of adult boots would increase the store's net earnings by $51000. Would this information affect the decision that you made in Requirement a? Complete this question by entering your answers in the tabs below, Required A Required 1 Required B2 Required Calculate the contribution to profit. Determine whether to eliminate the children's department Contribution to profit (los) Should the children's department be eliminated? Red A Required B1 > Problem 13-26A (Algo) Eliminating a segment LO 13-4 Zachary 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 Won's Children's Department Department Department Sales $ 690,000 $ 490,000 $ 230,000 cost of goods sold (275.000) (184,000 (106,375) Gross margin 415,000 306,000 123,625 Department Manager's salary (71,000) (60,000) (40,000) Sales comissions (125,200) (94.600) (37,400) Rent on tore lease (40,000) (40,000) (40,000) Store utilities 25.000 (23.000 (22.000 Net Incon (loss) $ 155,00 38.400 $ (16,775) Required o. 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 $51,000. Would this information affect the decision that you made in Requirement a? Complete this question by entering your answers in the tabs below. Required A Required By Required 82 Required Calculate the net income for the company as a whole with the children's department. Net income foss) Sales Cost of goods sold Gross margin Department manager's salary Sales commissions Rent on store lease Store utilities Net Income (los) Men's Department $ 690,000 (275,000 415,000 (71,000) (125,200) (40,000) (23,000) $ 155,000 Wonen's Department $ 490,000 (184,000 300,000 (60,000) (94.600) (40,000) (23,000 583,400 Children's Department $ 230,00 (106,375) 123,625 (40,000) (37,400) (40,000) 23,10) 5 (16,775) 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 S51,000 Would this information affect the decision that you made in Requirement a? Complete this question by entering your answers in the tabs below. Required A Required 1 Required 02 Required Confirm the conclusion you reached in Requirement a by preparing Income statements for the company without the children's department Men's Women's Company Department Department Total Sales Cost of goods sold Gross margin Department manager's salary Sales commissions Renton store lease Store utilities Net Income (oss) Sales Cost of goods sold Gross Narcin Department manager's salary Sales commissions Rent on store lease Store utilities Net Incone (loss) Department $ 690,000 (275,000) 415,000 (21,000) (125,200) (40,000) (21,000) $ 155,000 Department 490,000 (184,000) 106,000 (60.000) (94.600) (40,000) 23.000) $58,400 Department $ 230,000 (106925 123,625 (40,000) (37,400) (40,000 (23,000) 5 (16,775) Required o. 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 Requirementa 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 S51.000 Would this information affect the decision that you made in Requirement ? Complete this question by entering your answers in the tabs below. Required A Required 11 Required 02 Required 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 $51,000. Would this Information affect the decision that you made in Requirement ? Will the decision made in Requirement a betected?