Zachary Boot Company 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. Men’s DepartmentWomen’s DepartmentChildren’s DepartmentSales$ 690,000$ 490,000$ 230,000Cost of goods sold(275,000)(184,000)(106,375)Gross margin415,000306,000123,625Department manager’s salary(71,000)(60,000)(40,000)Sales commissions(125,200)(94,600)(37,400)Rent on store lease(40,000)(40,000)(40,000)Store utilities(23,000)(23,000)(23,000)Net income (loss)$ 155,800$ 88,400$ (16,775) Required Calculate the children's department's contribution to profit. Determine whether to eliminate the children’s department. 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. 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 $51,000. Would this information affect the decision that you made in Requirement a?