Exercise 25-25 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. N $38,000 Dept. $17,500 Dept. o $33,500 Dept. P $38,500 Dept. T $15,400 Total $142,900 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 4,100 18,000 22,100 $15,900 18,800 8,200 27,000 $19,500) 10,900 2,800 13, 700 $19,800 16,000 29,500 45,500 ${7.000) 18,700 $ 68,500 4,000 $ 62,500 22, 700 131,000 $(7,300) $ 11,900 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 1 (1) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. o Dept.P Dept. T Total Sales Expenses Avoldable Unavoidable Total expenses Net Income (loss)