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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

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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. N $75,000 Dept. $ 41,000 Dept. $68,000 Dept. $51,000 Dept. T $ 36,000 Total $271,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (los) 13,800 55,000 68,800 $ 6,200 41,200 17.400 58,600 $(17,600) 21,000 5,000 26,000 $ 42,000 18,000 42,000 60,000 $(9,000) 45,000 15,400 60,400 $(24,400) 139,000 134,800 273,800 $ (2,800) 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. 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)

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