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Dept. M $36,500 Dept. N $ 16,800 Dept. o $38,500 Dept. P $39,000 Dept. T $14,900 Total $145,700 Sales Expenses Avoidable Unavoidable Total expenses Net
Dept. M $36,500 Dept. N $ 16,800 Dept. o $38,500 Dept. P $39,000 Dept. T $14,900 Total $145,700 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 4,900 25,000 29,900 $ 6,600 18,800 8,000 26,800 $(10,000) 12,800 2,600 15,400 $23,100 17,000 30,000 47,000 $(8,000) 18,500 $ 72,000 4,900 $ 70,500 23,400 142,500 $(8,500) $ 3,200 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 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 Expenses: Avoidable Unavoidable Total expenses Net income (loss) $ $ 0 $ $ $ $ 0
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