6 Required information Exercise 23-10 Analysis of income effects from eliminating departments LO A1 Part 1 of 2 The following information applies to the questions displayed below. Suresh Co. expects its five departments to yield the following income for next year 5 points Dept. 7 S 43,000 Zotal Dept. H Dept. N Dept. o Dept. P s 65,000 Sales $312,000 $82,000 S 44,000 $78,000 Expenaes Avoidable Unavoidable 17,300 57,800 45,400 18,000 21,500 54,300 51,300 20,300 $153,500 $159,700 21,600 5,700 eBook Total expenses 75,100 67,000 23,700 71.600 313,200 75,800 6,900 $(23,000) $54,300 $(10,800) $(28,600) (1,200) Net income (loss) 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 23-10 Part 1 References (1) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. T Total Dept. M Dept. N Dept. O Dept. P Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss) Exercise 23-10 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. O Dept. P Dept. N Dept. T Total Sales Expenses: Avoidable 0 Unavoidable 0 Total expenses. 0 0 $ Net income (loss) 0 0 0