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A company expects its three departments to yield the following income for next year: Dept. Q Dept. R Dept. S Sales $7,500 $8,500 $8,900 Expenses

A company expects its three departments to yield the following income for next year:

Dept. Q Dept. R Dept. S
Sales $7,500 $8,500 $8,900
Expenses
Avoidable 2,600 3,300 4,300
Unavoidable 1,800

4,900

5,175

Total expenses 4,400

8,200

9,475

Net income (loss) $3,100

$300

$(575)

Compute the change to the company's total net income if Dept. S is eliminated.

$4,600 increase

$575 increase

$575 decrease

$4,600 decrease

$8,900 decrease

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