Vernon 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. Sales Cost of goods sold Gross margin Department manager's salary Sales commissions Rent on store lease Store utilities Net income (loss) Men's Department $ 710.000 (274,000) 436,000 (69,000) (123,200) (38,000) (21,000) $ 184,800 Women's Department $ 510,000 (183,200) 326,800 (58,000) 192.600) 38,000) (21,000) $ 117,200 Children's Department $ 210.000 (105, 375) 104,625 138,000) 136,400) 138,000) (21,000) $ (28,775) 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 as a whole with and 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 $49,000. 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? Adams Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. ADAMS TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss $ 510,000 (360.000) 151,000) (71,000) (41,000) (131,000) $144,000) Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase its revenue to $550,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income. Should West Division be eliminated if revenue were $550,000? c. What is the minimum amount of revenue required to justify continuing the operation of West Division? Complete this question by entering your answers in the tabs below. Required A Required B Required By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? Income would by Should West Division be eliminated