Required information Exercise 23-9 Analyzing income effects from eliminating departments LO P4 [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. $66,000 Dept. N $ 38,000 Dept. 0 Dept. P $59,000 $45,000 Dept. T Total $ 31,000 $239,000 11,300 53,000 64,300 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 38,200 14,400 52,600 23,300 4,500 15,500 31,200 40,500 11,900 52,400 128,800 115,000 243,800 27,800 46,700 $ 1,700 $(14,600) $31,200 $(1,700) $(21,400) $ (4,800) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Exercise 23-9 Part 2 (2) Management eliminates departments with sales dollars that are less than avoidable expenses. 0 DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N. Dept. o Dept. P Dept. T Total Sales $ Expenses: Avoidable Unavoidable Total expenses Net income (loss) $ 0 $ 0 $ 0 $ o $ 0 $ 0 0 0