Exercise 23-10 Analysis of income effects from eliminating departments LO A1 [The following Information applies to the questions dlsplayed below.j Suresh Co. expects its five departments to yleld the following Income for next year Dept. M Dept. N Dept. 0 Dept. P Dept. T Total $86,000 46,000 $80,000 $68,000 45,000 $325,000 19,000 22,500 24,900 77,600 $ 9,100 $(23,400) $55,100 $(9,600) $(29,800) $ (1,400) ales Expense:s 53,100 $159,500 58,600 22,800 5,900 55,100 21,700 $164,100 Avoidable Unavoidable Total expenses76,900 18,300 46,600 69,400 74,868 323,600 Net income (loss) Recompute and prepare the departmental Income statements (Including a comblned total column) for the company under each of the following separate scenarios Exercise 23-10 Part 1 (1) Management eliminates departments with expected net losses. DEPARTMENTS NET LOSSES ELIMINATED XP Dept. O Total Dept. M Dept. N Dept. P Dept. T Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) (2) Management ellminates departments with sales dollars that are less than avoldable expenses. EXPENSES ELIMINATED DEPARTMENTS WIT SA HAN AVOIDABLE Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses Net income (loss)