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 it 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 Children's Department Men' s Women's Department 510,00e 181,600 328,400 (54,000) (88,600) (34,000) 17,000 s 134,800 Department s 690,000 S 210,000 Sales Cost of goods sold Gross margin Department manager's salary Sales commissions Rent on store lease Store utilities 418,000 (65,000) (119,200) (34,000) (17,000) s 182,800e 103,375 106,625 (34,000) (34,400) (34,000) 17,000 S (12,775) Net income (loss) Requirec a. Calculate the contribution margin. Determine whether to eliminate the children's department. b-1. Calculate the net income for the company as a whole with the chiidren's department b-2. Confirm the conclusion you reached in Requirement a by preparing income statements for the company without the chidren's