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 $65,000 Dept. N $ 37,000 Dept. o $58,000 Dept. P $44,000 Dept. T $ 30,000 Total $ 234,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 10,800 52,600 63,400 $ 1,600 37,600 13,800 51,400 $(14,400) 23,000 4,400 27,400 $30, 600 15,000 30, 600 45,600 $(1,600) 39,600 11,200 50,800 $(20,800) 126,000 112,600 238,600 $ 4,680) 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) (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 Expenses: Avoidable Unavoidable Total expenses Net income (loss)