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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 $74,000 Dept. N $ 40,000 Dept. O $67,800 Dept. P $50,000 Dept. T $ 35,000 Total $ 266,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 13,380 54,600 67,980 $ 6,180 40, 680 16,800 57,480 $(17,480) 23,880 4,900 27,900 $39,180 17,500 39,180 56,689 $(6,680) 44,100 14,780 58, Bee $(23,880) 138,500 130, 180 268, 680 $ (2,680) 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 Expenses Avoidable Unavoidable Total expenses Net income (loss)
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