13-26A (Algo) Eliminating a segment LO 13-4 Munoz Boot Co. sells men's, women's, and children's boots. For each type of boot sold, it operates a separate departme own manager. All departments are housed in a single store. In recent years, the children's department has operated at a expected to continue to do so. Last year's income statements follow. Men's Department Women's Department Sales Cost of goods sold Gross margin $680,000 $500,000 (270,500) (180,400) 409,500 319,600 Department manager's salary (62,000) (51,000) Children's Department $ 200,000 (101,875) 98,125 (31,000) Sales commissions (116,200) (85,600) (32,900) Rent on store lease: (31,000) (31,000) (31,000) Store utilities (14,000) (14,000) (14,000) Net income (loss) $186,300 $ 138,000 $ (10,775) 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 department. c. Eliminating the children's department would increase space available to display men's and women's boots. Suppose estimates that a wider selection of adult boots would increase the store's net earnings by $42,000. Would this inform 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 < Prev 3 of 3 Next > 20 W of Macroex Home Ch 13 HW-Principles of Acco. K O to.mheducation.com/ext/man/index.html?.con-con&external browser-0launchUrl=https%252 W Ser Required a. Calculate the contribution to profit. Determine whether to eliminate the child b-1. Calculate the net income for the company as a whole with the children's dep b-2. Confirm the conclusion you reached in Requirement a by preparing income department c. Eliminating the children's department would increase space available to disp estimates that a wider selection of adult boots would increase the store's ne the decision that you made in Requirement a? Complete this question by entering your answers in the tabs below. Required A Rered 81 Required 82 Required C Required 81 Calculate the contribution to profit. Determine whether to eliminate the children's c Contribution to profit (loss) Should the children's department be eliminated? 77 80 23 43 54 Required A Required B1 55 < Prev 3 of 3 MacBook F5 FO E R T 16 Roles of Macro Ch 13 HW-Principles of Acc x eztomheducation.com/ext/map/index.htm?.con-condexternal browser-0&launchur-https%2 3 HW 6 Seved Sales commissions Rent on store lease Store utilities Net income (lo) Required (116,200) (31,000) (14,000) (85,600) (31,000) (14,000) 13 5 186, 300 $ 130,000 a. Calculate the contribution to profit. Determine whether to eliminate the chi b-1. Calculate the net income for the company as a whole with the children's des b-2. Confirm the conclusion you reached in Requirement a by preparing income department. c. Eliminating the children's department would increase space available to dim estimates that a wider selection of adult boots would increase the store's r the decision that you made in Requirement a? ces Complete this question by entering your answers in the tabs below. Required A Required 81 Required 82 Required C Calculate the net income for the company as a whole with the children's departme 20 2 Net income (loss) 43 960 218 23 94 84 of Macron X Ch 13 HW-Principles of Acce X to.mheducation.com/ext/map/index.html?.con-con&external browser-0&launchUrl=https%25 WO 2 O Save Required a. Calculate the contribution to profit. Determine whether to eliminate the child b-1. Calculate the net income for the company as a whole with the children's dep b-2. Confirm the conclusion you reached in Requirement a by preparing income department c. Eliminating the children's department would increase space available to disp estimates that a wider selection of adult boots would increase the store's ne the decision that you made in Requirement a? Complete this question by entering your answers in the tabs below. Required A Required 81 Required 82 Required C Confirm the conclusion you reached in Requirement a by preparing income statemen department. Sales Cost of goods sold Gross margin Department manager's salary Sales commissions Han's Department Women's Company Department Total 0 0 0 0 0 Rent on store lease Store utilides Net income (loss) $ 0 $ 0 $ *: 2 LAY 80 25 78 93 3 54 4 L 35 % < Prev 3 of 3 MacBook A 66 les of Macrox Home Ch 13 HW-Principles of Acc x ezto.mheducation.com/ext/map/index.html?.con-consecternal browser OlaunchUrl-https%21 HW Savert ed Required a. Calculate the contribution to profit. Determine whether to eliminate the chill b-1. Calculate the net income for the company as a whole with the children's des b-2. Confirm the conclusion you reached in Requirement a by preparing income department. c. Eliminating the children's department would increase space available to dis estimates that a wider selection of adult boots would increase the store's n the decision that you made in Requirement a? C Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required Eliminating the children's department would increase space available to display me management estimates that a wider selection of adult boots would increase the st information affect the decision that you made in Requirement a? Will the decision made in Requirement a be affected