hw 13 - question 4

Thoenton Boot Company selis men is, women's end chidrens beots. For each type of boot sold it operates a separate department that has at own manager. The manuger of the men's department has a sales staft of nime employees, the manager of the worsen's department has six employeps, and the manyger of the children's department has three employees. All departments are housed in a ungle store in recent years, the chidren s department hus operated at a net loss and is expected to continue to do so Last years incore stivements foliow Recuired b. Corfirm the concluvion you resched in Requirement a by preparng income stutements for the compary as a whole with and without the chidrens departwent. C. Eliminating the children's department would inctease space waslable to display men's and women's boots. Suppose management elomeses that a wider selection of aduit toots would increase the store s ret earninos by $48,000. Would this information affect the decision that you made in Gequeernent in? Compiete this question by entering your answers in the tabs below. a. Calculate the children's department's contribution to profit. Determine whether to eliminate the children's department b. Confirm the conclusion you reached in Requirement a by preparing income statements for the company as a whole with and without the children's department c. Eliminating the children's department would increase space avalable 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 $48,000. Would this information affect the decision that you made in Requirement a? Complete this question by entering your answers in the tabs below. Confirm the conclusion you reached in Requirement a by preparing income statements for the company as a whole with and without the children's department. Notei Enter amounts to be deducted with a minus sion. Required a. Calculate the children's department's contribution to profit. Determine whether to eliminate the children's department. b. Confirm the conclusion you reached in Requirement a by preparing income statements for the company as a whole with and without the children's department. c. Eliminating the children's department would increase space avallable 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 $48,000. Would this information affect the decision that you made in Requirement a ? Complete this question by entering your answers in the tabs below. Eliminating the children's department would increase space avallable to display men's and women's boots. Suppose manogement estimates that a wider selection of adult boots would increase the store's net earnings by $48,000. Would this information affect the decision that you made in Requirement a