Check Suresh Co. expects its five departments to yield the following income for next year. Dept. M $41,000 Dept. N $16,000 Dept. o $39,500 Dept. P $41,500 Dept. T $14,500 Total $152,500 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 4,700 18,000 22,700 $18,300 17,700 7,100 24,800 $(8,800) 14,400 3,000 17,400 $22,100 17,000 31,000 48,000 $(6,500) 19,300 $ 73, 100 4,500 $63.600 23,800 136,700 $(9,300) $ 15,800 Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Exercise 25-25 Part 1 (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 $ 0 Sales Expenses BU Prey 1 2 of 3 Next > Exercise 25-25 Part 1 (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 $ 0 0 Expenses: Avoidable Unavoidable Total expenses Net income (loss) 0 $ 0 S 0 0 $ 0 $ o 0 $ Exercise 25-25 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 0 O Expenses: Avoidable Unavoidable Total expenses Net income (loss) 0 $ 0 $ $ 0 CA 0 $ $ 0 0 $ 0