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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 | $ 63,000 | $ 35,000 | $ 56,000 | $ 42,000 | $ 28,000 | $ 224,000 |
Expenses | ||||||
Avoidable | 9,800 | 36,400 | 22,400 | 14,000 | 37,800 | 120,400 |
Unavoidable | 51,800 | 12,600 | 4,200 | 29,400 | 9,800 | 107,800 |
Total expenses | 61,600 | 49,000 | 26,600 | 43,400 | 47,600 | 228,200 |
Income (loss) | $ 1,400 | $ (14,000) | $ 29,400 | $ (1,400) | $ (19,600) | $ (4,200) |
b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.
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