! 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 $ 79,000 Dept. o $72,000 Dept. P $ 60,000 Total $292,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (los) 15,800 56, 600 72,400 $ 6,600 Dept. $ 41,000 43,600 19,800 63,400 $(22,400) 20,000 5,400 25,400 $ 46,600 20,000 46,600 66,600 $(6,600) Dept. 7 $ 40,000 48,600 18,200 66.800 $(26,800) 148,000 146,600 294,600 $ (2,600) 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. DEPARTMENTS WITH EXPECTED NETLOSSES ELIMINATED Dept.M Dept. N Dept. o Dept. P Dept. T Total $ 0 Sales Expenses: Avoidable Unavoidable 0 0 Total expenses Net Income (loss) $ 0 $ 0 $ 0 $ 0 os 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. N $ 79,000 Total $292,000 Sales Expenses Avoidable Unavoidable Total expenses Net Income (losa) 15,800 56,600 72,400 $6,600 Dept. N $ 41,000 43,600 19,800 63,400 $(22,400) Dept. o $72,000 20,000 5.400 25,400 $ 46,600 Dept. $60,000 20,000 46,600 66,600 $(6.600) Dept. $ 40,000 49,600 18,200 66,00 $(26,800) 148,000 146,600 294/1600 $ (2,600) 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 $ 0 Sales Expenses: Avoidable Unavoidable 0 0 Total expenses Net income (loss) 0 $ 0 $ 0 $ 0 0