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. o Dept. Dept. DR2,000 44,000 $70,000 $ 65,000 43,000 xpenses Avoidable 17,300 45,400 10,000 21,500 51.300 navoidable 57,000 21,600 5700 54,300 20,300 Total expenses 75,100 67.000 23/100 75,000 71600 Net Incono loan) $ 5,900 $(23,000) 954,300 0410, 800) (211.600) Total $312,000 153,500 159,700 313200 $1,200) Recomputer 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 Dept. N Dept. o Dept.P Dept. T Total $ 0 Sales Expenses Avoldable Unavoidable Total expenses Net Income foss) S 0 $ 0 $ 05 0 $ 0 . 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 $ 0 Sales Expenses Avoidable Unavoidable Oo Total expenses Net Income (loss) $ 0 S 05 0 $ 0 $ OS 0