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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.M Dept. Depto Deptup Dept. 1 Sales $68,000 $ 38,000 $65,000 $47,000 $ 33,000 Expenses Avoidable 12,300 39,400 23,900 16,500 Unavoidable 42,380 53,800 15,600 4,700 36,400 13.30 Total expenses 66,100 55,000 28,600 52,90 55,600 Net Income (loss) $ 1,900 $(17,000) $36,400 3(5,900) 5(22,600) Total $251,000 134,400 123,800 258,200 5 (7,200) 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 $ D Sales Expenses Avoidable Unavoidable 0 0 Net income foss) 5 $ 0$ 0$ OS os 0

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