Veen 15 Homework Saved 3 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. 25 points sales Coat of goods sold Cross margin Department manager's salary Sales commissions Rent on store lease Store utilities Net Income (108) Men's Department $ 690,000 275,000) 415,000 71,000) (125,2007 (40,000) (23.000) $ 155,000 Women's Department $ 490,000 186.000) 306,000 (60,000) (94.600) (40,000) (23,000) $08,400 Children's Department $ 230,000 (106,3751 123,625 (40,000) (37.400) (40.000) 123.000) $116,775) 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 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 $51.000 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 Bt Hequired 02 Required Calculate the contribution to pront. Determine whether to eliminate the children's department, Contribution to profit loss) should the children's department be eliminated? Required 81 > Homework i Saved 3 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 25 points Sales Coat of goods sold Gross margin Department manager's salary Sales comissions Rent on store lease Store utilities Het income (los) Men's Department 5 690,000 (275,000) 415,000 (72,000) (125,200) 140,000) (23,000) $ 155,000 Women's Department $ 490,000 280,000) 306,000 (60,000) (94.600) (40,000) (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 -1. Calculate the net income for the company as a whole with the children's department 6-2. 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 Requiremento? Complete this question by entering your answers in the tabs below. Required A Required B1 Required 12 Required c Calculate the net income for the company as a whole with the children's department. Net income foss) Seved 3 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 a 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. bints Sales Cost of goods sold Gross margin Department manager's salary Sales commissions Rent on store lease Store utilities Net Incone (loss) Meno Department $ 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) (40,000) (23,000) $ 8,400 Children's Department $ 230,000 (206.375) 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 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 o? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 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 Department Department Company Total Sales Cost of goods sold Gross margin Department manager's salary Sales commissions Rent on store lease Store utilities Net income doss)