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A company expects its three departments to yield the following income for next year. DEPT. A DEPT. B DEPT. C SALES $92,000 $15,000 $87,000 EXPENSES
A company expects its three departments to yield the following income for next year.
| DEPT. A | DEPT. B | DEPT. C |
SALES | $92,000 | $15,000 | $87,000 |
EXPENSES |
|
|
|
AVOIDABLE | 73,000 | 1,000 | 36,000 |
UNAVOIDABLE | 2,000 | 8,000 | 37,000 |
TOTAL EXPENSES | 75,000 | 9,000 | 73,000 |
NET INCOME (LOSS) | $17,000 | $6,000 | $14,000 |
Required: compute the following independent calculations
- The effect on total company income if dept. A is eliminated.
- The effect on total company income if dept. B is eliminated.
- The effect on total company income if dept. C is eliminated.
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