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. $23.00 Dept, N 39.000 Dept. o 566.000 Dept, P $43. 4 . Dept. T 5 34.000 Total $20,000 Sales 12.00 24.200 1.000 Expenses Avoidable Unavoidable Total expenses Net Income (los) 40.000 16,200 56,200 (17,200) 43,200 14. 57,200 $(23,200) 137.200 126,200 263,400 3.600) 67.000 $6.000 29.000 $37.00 54.000 $16.000 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 NET LOSSES ELIMINATED Dopt. M Dopt. N Dept. o Dept. P Dept. Total Expenses Avoidable Unavoidable Total expenses Net income (s) 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 $73,000 Dept $39,000 Dept. o $66,000 Dept. P $40,000 Dept. $ 34,000 Total $ 260,000 17.000 Sales Expenses Avoldable Unavoidable Total expenses Net Income (los) 12. 54,200 67,000 $6,000 40,000 16,200 56,200 $(17,000) 24,200 4.800 29,000 $37,000 137,200 126, 200 263,400 $ (3,400) 43,200 14.000 57,200 $(23,200) 54,000 5(6,000) 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 Expenses Avoidable Unavoidable Total expenses Net income