Question: plz make sure thag thw graph isnt cut off. ty! Problem 13-26A (Algo) Eliminating a segment LO 13-4 Perez Boot Co sells men's, women's and




Problem 13-26A (Algo) Eliminating a segment LO 13-4 Perez 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. Men's Women's Children's Department Department Department Sales $690.000 $ 490,000 5 190,000 Cost of goods sold (271,000) 180,000 (102.325 Gross margin 419,000 309,200 37.625 Department manager's salary (63,000) (52,000) (32,000) Sales comissions (112,200) (86,600) (33,400) Rent on store lease (32,000) (22.000 (2.000) Store utilities (15,000 25. (2000) Net income (los) 5 191,800 $ 123.600 $ (24.225) Required o. 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 chideen 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 stores net earnings by $43.000 Would this information affect the decision that you made in Requirementa? Complete this question by entering your answers in the tabs below. Required A Required 81 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? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required C Calculate the net income for the company as a whole with the children's department. Net income (loss) Pomirad R2 Complete this question by entering your answers in the tabs below. Required A Required 81 Required B2 Required 0 Confirm the conclusion you reached in Requirementa by preparing income statements for the company without the children's department. Men's Women's Company Department Department Total Sales 0 Cost of goods sold ross margin 0 Department manager's salary 0 Sales commissions 0 Rent on store lease 0 Store utilities 0 Net Income (loss) 0 $ 0 $ 0 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 men's and women's boots. Suppose management estimates that a wider selection of adult boots would increase the store's net earnings by $43,000. Would this information affect the decision that you made in Requirement a? hces Will the decision made in Requirement a be affected? Chec Problem 13-26A (Algo) Eliminating a segment LO 13-4 Perez 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 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 5690,000 (221,000) 419,000 (63,600) (117,200) (32,000) 15.000 $191,000 Women's Department $ 490,000 (180,500) 309,200 (52,000) (86,600) (22,000) (15.000 5 123,600 Children's Department 5 190,000 (102,375) 87,625 (32,000) (33,400) (32,000 125.000 $ (24,775) Required 6. 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 $43,000 Would this information affect the decision that you made in Requirement
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