Suresh Co. expects its five departments to yield the following income for next year. Recompute and prepare
Question:
Suresh Co. expects its five departments to yield the following income for next year.
Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios: Management
(1) Does not eliminate any department,
(2) Eliminates departments with expected net losses, and
(3) Eliminates departments with sales dollars that are less than avoidable expenses. Explain your answers to parts 2 and3.
Transcribed Image Text:
Dept. M $31,500 Dept. N Dept. o $17,500 $28,000 Dept. P $21,00014,000 Dept. T Sales Expenses Avoidable Unavoidable Total expenses 4,900 25,900 30,800 $ 700 18,200 6,300 24,500 11,200 2,100 13,300 (7,000) $14,700 7,000 14,700 21,700 S (700) 18,900 4,900 23,800 S (9,800) Net income (loss)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
1 No Departments Eliminated Total M N O P T Sales 112000 31500 17500 28000 21000 14000 Expenses Avoi...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Question Posted:
Students also viewed these Managerial Accounting questions
-
Johns Co. expects its five departments to yield the following income for next year. Recompute and prepare the departmental income statements (including a combined total column) for the company under...
-
The Poole Company reported the following income for 2014: Sales..................................................................$30,000 Cost of goods...
-
The Briggs family trust received the following income for the year ended 30 June. Rental income (net) 38,000 Unfranked dividends 25,000 Franked dividends (cash) 6,000 Interest 1,648 Trust profits...
-
A certain apple bruises if a net force greater than 9 . 5 N is exerted on it . Would a 0 . 1 3 k g apple be likely to bruise if it falls 1 . 8 m and stops after sinking 0 . 0 5 m into the grass?...
-
Suppose that we start at time to = 0 with a sample of 1000 cells. One day later we see that the population has doubled, and some time later we notice that the population has stabilized at 100000....
-
Solve the following equations using Cramer's rule: 3x+y+z = 3 2x+2y+5z=-1 x-3y-4z=2
-
How do the notions of going concern and gone concern affect ecological statements?
-
Analyzing and Interpreting Return on Assets Tiffany & Co. is one of the worlds premier jewelers and a designer of other fine gifts and housewares. Presented here are selected income statement and...
-
Consider the internal controls listed below. For each one, explain: ( i ) the risk it addresses, ( ii ) the risk category from Brown s taxonomy, ( iii ) the broad purpose of internal control it...
-
1. a. How much did the materials cost per unit change between June and July? b. How much did the conversion cost per unit change between June and July? 2. Which is the optimal choice of material and...
-
Cantrell Company has already manufactured 20,000 units of Product A at a cost of $20 per unit. The 20,000 units can be sold at this stage for $500,000. Alternatively, the units can be further...
-
Bethel Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is five units per hour. The machines capacity is...
-
For each of the savings account transactions in the accompanying table on page 163, calculate the following. a. End-of-year account balance. (Assume that the account balance at December 31, 2013, is...
-
Johnstone Inc. began operations in January 2014 and reported the following results for each of its 3 years of operations. Johnstone Inc. has never paid a cash or share dividend. There has been no...
-
Hakodat Manufacturing Company was organized January 1, 2015. During 2015, it has used in its reports to management the straight-line method of depreciating its plant assets. On November 8, you are...
-
Go to the World Banks databank website at http://databank.worldbank.org/data/reports. aspx?source=2&country=. Find the following annual data for South Korea (the Republic of Korea) and Thailand, for...
-
Figure 7.1 is drawn from Harrison and Rubinfeld's study of the demand for air pollution in Boston. Make a copy of Figure 7.1 and then estimate the total willingness to pay, for a household earning...
-
Go to http://www.federalreserve.gov/boarddocs/hh/ and find the most recent monetary policy report of the Federal Reserve. Read the first two parts of the report, which summarizes Monetary Policy and...
-
Explain the impact that international trade yields on the environment.
-
Represent each of the following combination of units in the correct SI form using an appropriate prefix: (a) m/ms, (b) k m, (c) k s /mg, and (d) k m N.
-
Grayson Company estimates that total factory overhead costs will be $100,000 for the year. Direct labor hours are estimated as 25,000 for the year. The company has two completed jobs at the end of...
-
At the beginning of April, Bernadette Grechus launched a custom computer solutions company called Softworks. The company had the following transactions during April. a. Bernadette Grechus invested...
-
Zucker Management Services opens for business and completes these transactions in November. Nov. 1 Matt Zucker, the owner, invested $30,000 cash along with $15,000 of office equipment in the company....
-
Humble Management Services opens for business and completes these transactions in September. Sept. 1 Henry Humble, the owner, invests $38,000 cash along with office equipment valued at $15,000 in the...
-
Write a function header for each of the following: 5.1 5.2 5.3 A function calcOutcome that receives a student's moduleMark and then returns true if the moduleMark is greater than 50, or else returns...
-
You have been hired to develop the launch of a new product for fast weight loss for a new start-up called ABC Company. Answer the following questions: How can you develop your competitive advantage...
-
Calculate the energy stored for the series-parallel combination shown in figure if C1 = 2uF, C = 1.6F, C3 = 4.3F, C = 6F, and C5 = 8F and charged to a potential difference of 3200- V. (11pnts) C3 HH...
Study smarter with the SolutionInn App