Question: how do i solve parts a-c with work? -1A. Analyze Operational Changes Richmond's is a retail store with eight departments, including a garden department that

how do i solve parts a-c with work?
how do i solve parts a-c with work? -1A. Analyze Operational Changes

-1A. Analyze Operational Changes Richmond's is a retail store with eight departments, including a garden department that has been operating at a loss. The following condensed income statement gives the latest year's operating results: Required a. Calculate the gross profit percentage for the garden depariment and for the other depariments as a group. b. Suppose that if the garden department were discontinued, the space occupied could be rented to an outside firm for $18,000 per year, and the common expenses of the firm would be reduced by $4,500. What effeet would this action have on Richmond's net income? (Ignore income tax in your calculations.) c. It is estimated that if an additional $6,000 were spent on advertising, prices in the garden center could be raised an average of 5% without a change in physical volume of products sold. What effect would this have on the operating resuls of the garden department? (Again, ignore income tax in your calculations.)

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