Exercise 23-10 Analysis ot income ettects trom 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. N $ 38,000 Dept. P $55,000 Dept. M $76,000 Total $275,000 Dept. 0 $69,000 Dept. $ 37,000 Sales Expenses Avoidable Unavoidable 45,900 16,10e 62,000 $(25,000) $141,800 $137,200 279,000 14,300 55,400 69,700 $ 6,300 41,800 18,000 59,800 $(21,800) 21,300 5,100 26,40e $42,600 18,500 42,680 61,100 $(6,100) Total expenses $ (4,000) Net income (loss) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Exercise 23-10 Part 2 (2) Management eliminates departments with sales dollars that are less than avoidable expenses DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. P Dept. T Dept. O Jotal Dept. N Dept. M Sales Expenses Avoidable Unavoidable Total expenses Net income (loss)