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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
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[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 | $ 85,000 | $ 45,000 | $ 79,000 | $ 66,000 | $ 44,000 | $ 319,000 |
Expenses | ||||||
Avoidable | 17,800 | 46,000 | 19,300 | 22,000 | 52,200 | 157,300 |
Unavoidable | 58,200 | 22,200 | 5,800 | 53,900 | 21,000 | 161,100 |
Total expenses | 76,000 | 68,200 | 25,100 | 75,900 | 73,200 | 318,400 |
Income (loss) | $ 9,000 | $ (23,200) | $ 53,900 | $ (9,900) | $ (29,200) | $ (600) |
b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.
! Required information [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department M $ 85,000 Department N $ 45,000 Department o $ 79,000 Department P $ 66,000 Department T $ 44,000 Total $ 319,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) 17,800 58,200 76,000 $ 9,000 46,000 22,200 68,200 $ (23,200) 19,300 5,800 25,100 $ 53,900 22,000 53,900 75,900 $ 19,900) 52,200 21,000 73,200 $ (29,200) 157,300 161,100 318,400 $ (600) b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Total increase in incomeStep by Step Solution
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