Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

Suresh Company reports the following segment $($department$)$ income results for the year.

Department M Department N Department O Department P Department T Total

Sales $ $74,000$ $ $40,000$ $ $67,000$ $ $50,000$ $ $35,000$ $ $266,000$

Expenses

Avoidable $13,30040,60023,00017,50044,100138,500$

Unavoidable $54,60016,8004,90039,10014,700130,100$

Total expenses $67,90057,40027,90056,60058,800268,600$

Income $($loss$)$ $ $6,100$ $ $(17,400)$ $ $39,100$ $ $(6,600)$ $ $(23,800)$ $ $(2,600)$

b$.$ Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a$,$ are eliminated.