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Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable...

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Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,350,000 $1,100,000 $250,000 Cost of sales 922,000 737,000 185,000 Gross profit 428,000 363,000 65,000 Direct expenses $144,000 $120,000 $24,000 Common expenses 179,000 132,000 47,000 Total expenses 323,000 252,000 71,000 Net income (Loss) $105,000 $111,000 $(6,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department 4. Department 1-3 % Department 4 % b. What effect would elimination of department 4 have had on total firm net income? (Ignore the effect of income tax.) The firm's net income would be: $

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