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Required information Exercise 23-9 (Algo) Segment elimination LO P4 [The following information applies to the questions displayed below] Suresh Company reports the following segment
Required information Exercise 23-9 (Algo) Segment elimination LO P4 [The following information applies to the questions displayed below] Suresh Company reports the following segment (department) income results for the year. Sales Expenses Department T $ 42,000 50,400 Department M $ 81,000 Department N $ 43,000 Department o $ 77,000 Department P $ 62,000 Total $305,000 16,800 57,400 44,800 21,000 Total expenses Income (loss) 74,200 65,800 20,600 5,600 26,200 21,000 50,800 71,800 153,600 19,600 154,400 70,000 308,000 $ 6,800 $ (22,800) $ 50,800 $ (9,808) $ (28,000) $ (3,000) Avoidable Unavoidable Exercise 23-9 (Algo) Part 1 a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? Department Decision Department M Department N Department O Department P Department T Required information Exercise 23-9 (Algo) Segment elimination LO P4 [The following information applies to the questions displayed below] Suresh Company reports the following segment (department) income results for the year. Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department P $ 62,000 Department T $ 42,000 Department H $ $1,000 Department N $ 43,000 Department O $77,000 16,000 $7,400 74,200 $ 6,800 44,800 21,000 65,800 $(22,800) 21,000 50,800 71,800 $ 50,800 $ (9,800) $ (28,000) Exercise 23-9 (Algo) Part 2 20,600 5,600 26,200 se, 400 19,600 70,000 Total $305,000 153,600 154,400 300,000 $ (3,000) b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Total increase in income
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