Dept. I $ 15,100 Total $145,900 Suresh Co. expects its five departments to yield the following income for next year. Dept. M Dept. N Dept. O Dept. P. Sales $ 39,500 $16,300 $38,000 $ 37,000 Expenses Avoidable 4,000 14,700 13,000 9,000 Unavoidable 18,000 7,100 2,100 14,500 18,200 4,300 $ 58,900 $ 46,000 Total expenses 22,000 21,800 15,100 23,500 22,500 104,900 Net income (loss) $ 17,500 $(5,500) $22,900 $ 13,500 $ (7,400) $ 41,000 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. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. o Dept. P Dept. I Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss) (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 Expenses: Avoidable Unavoidable Total expenses Net income (loss)