5 Required information Part 1 of 2 Exercise 23-9 Analyzing income effects from eliminating departments LO P4 (The following information applies to the questions displayed below.) Suresh Co. expects its five departments to yield the following income for next year. 1.11 points Dept. M $ 89,000 Dept. N $ 47,000 Dept. o $ 85,000 Dept. P $ 73,000 Dept. T $ 48,000 Total $ 342,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 19,800 59,800 79,600 $ 9,400 48,400 24,600 73,000 $ (26,000) 19,100 6,200 25,300 $59,700 24,000 59,700 83,700 $ (10,700) 55,800 23,800 79,600 $ (31,600) 167,100 174,100 341,200 $ (800) eBook Hint Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Print Exercise 23-9 Part 1 References (1) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M. Dept. N Dept. o Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss) ! Required information Exercise 23-9 Analyzing income effects from eliminating departments LO P4 (The following information applies to the questions displayed below.) Suresh Co. expects its five departments to yield the following income for next year. Dept. M. $ 89,000 Dept. N $ 47,000 Dept. o $ 85,000 Dept. P $ 73,000 Dept. T $ 48,000 Total $342,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 19,800 59,800 79,600 $ 9,400 48,400 24,600 73,000 $ (26,000) 19,100 6,200 25,300 $ 59,700 24,000 59,700 83,700 $ (10,700) 55,800 23,800 79,600 $(31,600) 167,100 174,100 341,200 $ (800) cluding a combined total column) for the company under Recompute and prepare the ntal income statements each of the following separate scenarios. Exercise 23-9 Part 2 (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. o Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)