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. 0 $36,500 Dept. 7 $15,000 Dept. H $38,500 Dept. P $39,500 Total Dept. N $16,600 $146,100 Sales Expenses Avoidable $ 69,800 $ 68,300 138,100 4,100 24,000 28,100 18,600 7,700 26,300 19,200 4,400 12,900 2,700 15,600 $20,900 15,000 29,500 44,500 Unavoidable Total expenses 23,600 $(8,600) 8,000 Net income (loss) $10,400 $(9,700) $(5,000) combined total column) for the company ncome statements (includin Recompute and prepare under each of the following separate scenarios department Exercise 25-25 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. N Dept. O Total Dept. M Sales Expenses: Avoidable 0 Unavoidable 0 Total expenses Net income (loss) 0