Exercise 23-9 Analyzing income effects from eliminating departments LO P4 [The following information applies to the questions displayed below.] Suresh Co. expects its five departments to yield the following income for next year. Dept. M $80,000 Dept. N $ 42,000 Dept. 0 $76,000 Dept. P $61,000 Dept. T $ 41,000 Total $300,000 Sales Expenses Avoidable 16,300 44,200 20,300 20,500 49,500 150,800 Unavoidable 57,000 20,400 5,500 50,200 152,000 Total expenses 18,900 68,400 73,300 64,600 25,800 70,700 302,800 Net income (loss) $ 6,700 $(22,600) $50, 200 $(9,700) $(27,400) $ (2,800) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Exercise 23-9 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 Sales Expenses: $ 0 $ Avoidable Unavoidable Total expenses Net income (loss) 0 $ 0 $ 0 $ Total $ 0 $ 0 0 0 0