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Required information

[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				Dept. N					Dept. O				Dept. P					Dept. T					Total
Sales		$	65,000			$	37,000				$	58,000			$	44,000				$	30,000			$	234,000
Expenses
Avoidable			10,800				37,600					23,000				15,000					39,600			$	126,000
Unavoidable			52,600				13,800					4,400				30,600					11,200			$	112,600
Total expenses			63,400				51,400					27,400				45,600					50,800				238,600
Net income (loss)		$	1,600			$	(14,400	)			$	30,600			$	(1,600	)			$	(20,800	)		$	(4,600	)

Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios.

(1) Management eliminates departments with expected net losses.

(2) Management eliminates departments with sales dollars that are less than avoidable expenses.

PARTMENTS WIT Dept. M NE SE LIMINA Dept. N Dept. O Dept. P Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses Net income (loss)