Stuart 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. The manager of the men's department has a sales staff of nine employees, the manager of the women's department has six employees, and the manager of the children's department has three employees. 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: Women's Children's Department 210,000 (104,375) 105,625 (36,000) (35,400) (36,000) (19,000 $ (20,775) Men' s Department Department Sales Cost of goods sold Gross margin Department manager's salary Sales commission Rent on store lease Store utilities $710,000 490,000 (273,000 437,000 (67,000) (121,200) (36,000) 19,000 193,800 182,400) 307,600 (56,000) (90,600) (36,000) 19,000 106,000 Net income (loss) Required a. Calculate the contribution margin. 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. Stuart 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. The manager of the men's department has a sales staff of nine employees, the manager of the women's department has six employees, and the manager of the children's department has three employees. 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: Women's Children's Department 210,000 (104,375) 105,625 (36,000) (35,400) (36,000) (19,000 $ (20,775) Men' s Department Department Sales Cost of goods sold Gross margin Department manager's salary Sales commission Rent on store lease Store utilities $710,000 490,000 (273,000 437,000 (67,000) (121,200) (36,000) 19,000 193,800 182,400) 307,600 (56,000) (90,600) (36,000) 19,000 106,000 Net income (loss) Required a. Calculate the contribution margin. 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