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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 year.

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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 year. Dept. N $76,000 38,000 Total $275,000 Dept. M Dept. O Dept. P $69,000 $55,000 Dept. S 37,000 Sales Expenses 18,500 42,600 61,100 42, 600 (6,100) 21,300 5.100 26, 400 Avoidable Unavoidable Total expenses 41,800 18,000 59, 800 S 6, 300 (21,800) 45,900 16,100 62,000 S (25, 000) $141, 800 $137,200 279,000 (4,000) 14,300 55,400 69,700 Net income (loss) 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 EXP NE SSES 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. Total $275,000 Dept. M Dept. N $76,000 38,000 Dept. O Dept. P $69,000 $55,000 Dept. T S 37,000 Sales Expenses 18,500 42,600 61,100 42, 600 (6,100) 21,300 5.100 26, 400 Avoidable Unavoidable Total expenses 41,800 18,000 59, 800 S 6, 300 (21,800) 45,900 16,100 62,000 S (25, 000) $141, 800 $137,200 279,000 (4,000) 14,300 55,400 69,700 Net income (loss) 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. DEPARTMENT TH SAL THAN AVOIDABLE EXPENS LIMINAT Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses Net income (loss)

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