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Required information [The following information applies to the questions displayed below.J Suresh Co. expects its five departments to yield the following income for next year
Required information [The following information applies to the questions displayed below.J Suresh Co. expects its five departments to yield the following income for next year Total $305,000 Dept. M Dept. N Dept. o Dept. P Dept. T 42,000 Sales Expenses $81,000 43,000 $77,000 62,000 Avoidable Unavoidable Total expenses 16,800 57,400 74,200 44,800 21,000 65,800 20,600 5,600 26,200 21,000 50,800 71,800 50,400 19,600 70,000 (28,000) $153,600 $154,400 308,000 (3,000) Net income (loss) $ 6,800 (22,800) $50,800 $(9,800) 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)
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