! 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. Total Dept. M $75,000 Dept. N $ 41,000 Dept. 0 $68,000 Dept. P $51,000 Dept. T $ 36,000 $271,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 13,800 55,000 68,800 $ 6,200 41,200 17,400 58,600 $(17,600) 21,000 5,000 26,000 $42,000 18,000 42,000 60,000 $(9,000) 45,000 15,400 60,400 $(24,400) 139,000 134,800 273,800 $ (2,800) 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. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. o Dept. P Dept. T Total Sales $ 0 Expenses: Avoidable 0 Unavoidable 0 Total expenses Net income (loss) $ 0 $ 0 $ 0 $ $ 0 $ 0 ! 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 $75,000 Dept. N $ 41,000 Dept. 0 $68,000 Dept. P $51,000 Dept. T $ 36,000 Total $271,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (Loss) 13,800 55,000 68,800 $ 6,200 41,200 17,400 58,600 $(17,600) 21,000 5,000 26,000 $42,000 18,000 42,000 60,000 $(9,000) 45,000 15,400 60,400 $(24,400) 139,000 134,800 273,800 $ (2,800) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (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 $ 0 Expenses Avoidable 0 Unavoidable 0 Total expenses Net income (loss) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0