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 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.

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P Dept. Dept. M 334.000 Dept. N Dept. O Dept. S23,500 $33,000 T S 10,500 Sales Expenses $27.500 Avoidable Unavoidable Total expenses 4.700 18,900 5,100 24,000 14,900 5,900 20,800 4,500$10,300) 15,800 8,000 15,000 23,000 18,700 24,700 $9,300 Net income (loss) $(500$14,300