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 $85,000 Dept. N $ 45,000 Dept. o 579,000 Dept. P $66,000 Dept. $ 44,000 Total $319,00 Sales Expenses Avoidable Unavoidable Total expenses Net Income (loss) 17,880 58.200 76,000 $9,000 46,000 22,200 68,200 5 (23,200) 19,300 5,800 25.100 $53,900 22,000 53,900 75,900 5(9,980) 52,200 21,000 73,200 $(29,200) 157, 300 161,100 313,400 $ (600) 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. Dept. P Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses Net Income (los) Avoidable Unavoidable Total expenses Net income (los) 17,800 58,200 76,000 $ 9,000 46,900 22,200 68,200 $(23,200 5,800 25,100 $53,900 53.900 75.900 (9.990) 21,000 73 200 $(29,200) 161,100 318 400 $ (600) Recompute and prepare the departmental income statements (including a combined total column) for the compan each of the following separate scenarios. Exercise 23-9 Part 2 (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARIMENTS 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)