Required information Exercise 23-9 Analyzing income effects from eliminating departments LO PA [The following information applies to the questions displayed below) Suresh Co. expects its five departments to yield the following income for next year Sales 5 41,000 Dept. o $72.000 $2,600 Dept. P 100.000 $40,000 Total 5292,000 Expenses Avoidable avoidable Total expenses Net Income (less) 19.000 46, 10,200 148.000 146,600 $6.600 25.00 146,600 (6.600) $(26,800) 5 (2.600) 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 1 (1) Management eliminates departments with expected net losses DEPARTMENTS WITH EXPECTED NETLOSSES EUMINATED Dept Dept. N Dept. o Dept. P Dept. T Total Expenses 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. $79,000 Dept. N $41,000 Dept. o $72,000 D ept.P $60,000 Dept. T $40,000 Total $292,00 15,800 Sales Expenses Avoidable Unavoidable Total expenses Net Income (loss) 43,680 19,800 20,000 56.600 20,000 46.660 48,600 18 269 66,800 $(26,800) 148,000 146,600 294,609 $ (2,660) $ 6,600 $(22,400) 146,600 $(6,600) 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 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 (los) $ 0 $ 0 $ 0 $ 0 $ 0