pt 1.

pt 2.

Required information (The following information applies to the questions displayed below) Suresh Co. expects its five departments to yield the following income for next year. Dept. P $57,000 Total $285,000 Dept. O $71,000 Dept. T $ 39,000 Dept. M $78, 000 Dept. N $ 40, 000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 47, 700 17, 500 65, 200 $(26, 200) 43, 000 19, 200 62, 200 $(22, 200) 19,500 43, 63, 300 $(6, 300) 147, 400 142, 000 289, 400 S (4, 400) 15, 300 56, 200 71,500 S 6, 500 21,900 5, 300 27, 200 $43, 800 Recompute and prepare the departmental income statements (including a combined total column) for the company each of the following separate scenarios. (1) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. P Dept. T Total Dept. O Dept. M Dept. N Sales Expenses: Avoidable Unavoidable Total expenses %24 %24 Net income (loss) Required information (The following information applies to the questions displayed below) Suresh Co. expects its five departments to yield the following income for next year. Dept. P $57,000 Total $285, 000 Dept. N S 40, 000 Dept. T S 39,000 Dept. 0 $71, 000 Dept. M $78, 000 Sales Expenses Avoidable Unavoidable Total expenses 147, 400 142,000 289,400 $ (4,400) 19, 500 47, 700 17, 500 65, 200 S(26, 200) 21,900 5, 300 27,200 $43, 800 43, 000 19, 200 62, 200 $(22, 200) 15, 300 56, 200 71,500 $ 6, 500 43, 800 63,300 S(6, 300) Net income (loss) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Total Dept. T Dept. P Dept. O Dept. N Dept. M Sales Expenses: Avoidable Unavoidable al expenses Net income (loss)