Required information Exercise 23-10 Analysis of Income effects from ellminating 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. M $74,880 Dept. N $ 40,eee Dept. o $67,680 Dept. P $50,880 Dept. T $ 35,689 Total $266,820 23, Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 13.389 54, see 67.989 40.660 16. Bee 57.489 $(17,4ee) 27.989 $39, 180 17.500 39.100 56,682 $(6,6ee) 44,182 14,780 58.820 $(23,880) $138,500 $132.189 268.600 $ (2,680) $ 6,180 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 1 (1) Management ellminates 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) Required information Exercise 23-10 Analysis of Income effects from ellminating 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. M $74,880 Dept. N $ 40,eee Dept. 0 $67,680 Dept. P $50,880 nant T $ 35,689 Total $266,820 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 13,380 54,600 67.900 $ 6,100 40,60e 16, Bee 57,4ee $(17.400) 23.880 4.989 27,9ee $39.189 17.500 39,180 56,6ee $(6,6ee) 44,1ee 14,780 58,880 $(23,880) $138,50e 130.1ee 268, 680 $ (2,680) 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 ellminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITHLESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept N Dept. o Dept. P D ept. Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)