HOW DO I CALCULATE?

Suresh Co. expects its five departments to yield the following income for next year. Dept. N $ 42,000 Dept. O $76,000 Dept. P $61,000 Dept. M $80,000 Dept. T $ 41,000 Total Sales $300,000 Expenses Avoidable Unavoidable Total expenses 16,300 20,300 5,500 20,500 50,200 49,500 18,900 150,800 44,200 20,400 64,600 57,000 152,000 73,300 70,700 $ (9,700) 68,400 302,800 25,800 $ 6,700 $ (2,800) Net income (loss) $ (22,600) $50,200 $ (27,400) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (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: Avoidable Unavoidable Total expenses Net income (loss) (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. N Dept. T Dept. M Dept. O Dept. P Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)