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MUST SHOW ALL WORK Department Elimination: The Company's Total Net Income is not high enough to enable growth and appease shareholders. The Company is considering

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Department Elimination: The Company's Total Net Income is not high enough to enable growth and appease shareholders. The Company is considering eliminating departments to increase overall Net income. Below is the most recent Department Wide Income Statement: in Millions Dept 1 Dept 2 Dept 3 Dept 4 Dept 5 Total Sales $630 $265 $80 $210 $105 $1.290 Expenses Avoidable $350 $280 $40 $220 $70 $960 Unavoidable $150 $50 $50 $50 $25 $325 Total Exp $500 $330 $90 $270 $95 $1.285 Net Income -$65 -$10 -$60 $10 $5 $130 *** Required 1) Indicate which (if any) department(s) should be eliminated, 2) What would the resulting Net Income for the Company be after eliminating necessary departments? Show your work in a tabular format similar to presented above

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