Exercise 10-10 Analysis of income effects from eliminating departments LO A1 [The following information applies to the questions displayed below.] Suresh Co. expects its five departments to yield the following income for next year Dept. MDept. N Dept. O Dept. T Total $ 37,500 $15,900 $34,500 $ 37500$14.400 Sales Expenses 12.400 2,300 18,300 54,900 6.000 $ 52200 4.400 13.800 Total expenses 25400 21700 14.700 24,300 107100 Net income (loss) 12100 $(5.800) $19800 16,500 $ (9.900) 32.700 compute and prepare the departmental income statements (ncluding a combined total column) for the company under each of the following separate scenario References ion Broak Exercise 10-10 Part 1 (1) Management eliminates departments with expected net losses Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses value Required im 2.84 points Exercise 10-10 Part 2 (2) Management eliminates departments with sales dollars that are less than avoidable expenses. SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses Avoidable ble Total expenses Net income (loss)