Required information Exercise 23-10 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. O $85,000 Dept. P $ 73,000 Total Dept. M $89,000 Dept. N $47,000 Dept. T 48,000 Sales $342,000 Expenses Avoidable Un a voidable 19,800 19,100 55,800 $167,100 $174,100 48,400 24,000 6,200 59,800 24,600 59.799 23,800 Total expenses 79,600 73,000 25,300 83,700 79,600 341,200 Net income (loss) 9,400 $(26,000) $59,700 $(10,700) $(31,600) (800) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Exercise 23-10 Part 2 (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total $ Sales 0 Expenses: Avoidable 0 Unavoidable 0 Total expenses 0 $ 0$ 0 $ 0$ $ 0 Net income (loss)