Society & Env Question 3 - Ch 13 HW - Connec X Wikipedia Youtu D21 Grades - Principles of Accountin X - New tab - CW x + https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/questic ACCOUNTING DDS GA Driver's Lic... X Xfinity G Gmail YouTube Maps Ch 13 HW i Saved 3 Problem 13-26A (Algo) Eliminating a segment LO 13-4 Finch 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 5 expected to continue to do so. Last year's income statements follow. points Men's Women's Children's Department Department Department Sales $ 660,000 $ 480, 000 $170, 000 Cost of goods sold (268, 500) (178, 800 (99, 875 ) eBook Gross margin 391, 500 301, 200 70, 125 Department manager's salary (58, 000 ) (47, 000) 27, 000) Sales commissions (112, 200) (009'T8) 30, 900) Rent on store lease (000'27) (000'47 27, 000) Print Store utilities (10,000) (000'0I) (one'et Net income (loss) $ 184, 300 $ 135, 600 $ (24, 775) References 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 $38,000. 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 B1 Required B2 Required C Calculate the contribution to profit. Determine whether to eliminate the children's department. Contribution to profit (loss) Should the children's department be eliminated? Required 81 3 of 3 Next > MS 3 of 3 Next