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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
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, Dept. o Dept. P Dept. Sales $68,000 $ 38,000 $65,000 $47,800 $ 33,000 Expenses Avoidable 12,300 39,400 23,900 16,500 42,300 Unavoidable 53,800 15,600 4 700 36,400 13,300 Total expenses 66,100 55,000 28,600 52,900 55,600 Net Income (los) $ 1,900 $(17,eee) $36,400 $(5,900) $(22,600) Total $ 251,000 134,400 123,800 258,200 $ 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 1 (1) Monagement eliminates departments with expected net losses DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept M Dept. N Dept. o Dept. P Dept. T Total $ 0 Expenses Avaldate 0 0 Total expenses Netcome oss $ 05 05 0 $ 0 $ 0$ 0
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