Required information Exercise 25-25 Analysis of income effects from eliminating departments LO A1 (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 $40,500 Dept. N $16,200 Dept. o $37,500 Dept. P $40,000 Dept. T $14,700 Total $148,900 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 4,900 22,000 26,900 $13,600 17,300 6,700 24,000 $(7,800) 11,300 2,400 13,700 $23,800 15,000 29,000 44,000 $ (4,000) 19,200 4,500 23,700 $ (9,000) $ 67,700 $ 64,600 132,300 $ 16, 600 Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Exercise 25-25 Part 2 (2) Management eliminates departments with sales dollars that are less than avoidable expenses. Exercise 25-25 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. I Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)