Problem 13-26 Eliminating a segment LO 13-4 Rooney 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: ed Men' s Women' s Children's Department $ 210,000 (103,375) 106, 625 ok Department 690,000 (272,000) 418,000 Department $ 510,000 (181,600) 328, 400 nt Sales nces Gross margin Department manager's salary (65, 000) Sales commissions (119,200) Rent on store lease (34,000) (54,000) (34,000) (34, 400) (34,000) (17,000) Net income (loss) 182,800 134,800 (12,775) (88, 600) (34,000) Store utilities Required e. Calculate the contribution margin. Determine whether to eliminate the children's department