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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. vept. , wept. vepu, u vepu. vepu. Sales $73,000 $ 39,000 $66,000 $48,000 $ 34,000 Expenses Avoidable 12,800 40,000 24,200 17,000 43,200 Unavoidable 54,200 16,200 4,800 37,000 14,000 Total expenses 67,000 56,200 29,000 54,000 57,200 Net income (loss) $ 6,000 $(17,200) $37,000 $(6,000) $(23,200) FUL $260,000 137,200 126,200 263, 400 $ (3,400) 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 Dept. M Dept. N Dept. o Dept P Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses Net income (los)
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