3515 eBook Print Question 6 Not complete Marked out of 3.0D P Flag question Total Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Departments 1-3 Department 4 Sales $1,150,000 $950,000 $200,000 Cost of sales 752,500 598,500 154,000 Gross profit 397,500 46,000 Direct expenses $144,000 $120.000 $24,000 Common expenses 141.000 113,000 28,000 Total expenses 233,000 52,000 Net income (Loss) $ $112,500 S(6,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department 4. 285,000 $118.500 Department 1-3 0 Department 4 0 b. What effect would elimination of department 4 have had on total firm net income? (Ignore the effect of income tax.) The firm's net income would be: $ 0 Check