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! Required information (The following information applies to the questions displayed below.] Suresh Co. expects its five departments to yield the following income for next
! Required information (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. 0 $79,000 Dept. P $66,000 Dept. I $ 44,000 Total $319,000 Sales Expenses Avoidable Unavoidable Total expenses Net 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 $(9,900) 52,200 21,000 73,200 $(29,200) 157,300 161, 100 318,400 (600) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (1) Management eliminates departments with expected net losses. QuickBooks: Official Site Smart Tools. Better Business. X Answer is not corrupicu. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. N Dept. P Dept. T Total Dept. M 85,000 Dept. o 79,000 Sales $ $ $ 164,000 Expenses: Avoidable 17,800 19,300 37,100 Unavoidable 58,200 5,800 64,000 Total expenses 76,000 25,100 53,900 101,100 62,900 Net income (loss) $ 9,000 $ 0 $ 0 $ 0 (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. T Total Sales $ O Expenses: Avoidable 0 Unavoidable 0 Total expenses Net income (loss) $ 0 $ 0 0 $ 0 $ 0 0
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