! 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 $80,000 Dept. N $ 42,000 Dept. o $ 76,000 Dept. P $61,000 Dept. T $ 41,000 Total $300,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 16,300 57,000 73,300 $ 6,700 44,200 20,400 64,600 $(22,600) 20,300 5,500 25,800 $50,200 20,500 50,200 70, 700 $(9,700) 49,500 18,900 68,400 $(27,400) 150,800 152,000 302,800 $ (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 Expenses: Avoidable Unavoidable Total expenses Net income (loss) 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. $80,000 Dept. N $ 42,000 Dept. o $76,000 Dept. P $61,000 Dept. T $ 41,000 Total $300,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 16,300 57,000 73,300 $ 6,700 44,200 20,400 64,600 $(22,600) 20,300 5,500 25,800 $50,200 20,500 50,200 70, 700 $(9,700) 49,500 18,900 68,400 $(27,400) 150, 800 152,000 302,800 $ (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 Sale Expenses: Avoidable Unavoidable Total expenses Net income (loss)