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) eliminates departments with expected net losses and (2) eliminates departments with sales dollars that are less than avoidable expenses.
Explain your answers to parts 1 and 2.

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A B D E F G 1 Dept. M Dept. N Dept. O 2 Sales 3 Expenses 4 Avoidable $03,000 $35,000 $50,000 Dept. P $42,000 Dept. T $28,000 Total $224,000 9,800 36,400 22,400 14,000 37,800 120,400 5 Unavoidable 51,800 12,600 4,200 29,400 9,800 107,800 Total expenses 01,000 7 Net income (loss) $1,400 49,000 $(14,000) 26,000 43,400 47,600 228,200 $29,400 $ (1,400) $(19,600) $ (4,200)