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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.
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 $87,000 Dept. N $ 47,000 Dept. o $83,000 Dept. P $ 69,000 D ept. T $ 46,000 Total $332,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 18,800 59,000 77,800 $ 9,200 47,200 23,400 70,600 $(23,600) 18,500 6,000 24,500 $58,500 23,000 58,500 81,500 $(12,500) 54,000 22,400 76,400 $ (30,400) 161,500 169, 300 330,800 $ (1,200) 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 D ept. T Total Sales $ 0 Expenses: Avoidable Unavoidable 0 0 I I Total expenses Net income (loss) $ 0 $ 0 $ 0 $ 0 $ 0$ 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 $87,000 Dept. N $ 47,000 Dept. o $83,000 Dept. P $ 69,000 Dept. T $ 46,000 Total $332,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 18,800 59,000 77,800 $ 9,200 47,200 23,400 70,600 $ (23,600) 18,500 6,000 24,500 $58,500 23,000 58,500 81,500 $(12,500) 54,000 22,400 76,400 $(30, 400) 161,500 169, 300 330,800 $ (1,200) 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 Sales | $ 0 Expenses: Avoidable Unavoidable Total expenses Net income (loss) 0 S 0 S 0 $ 0 $ 0 $ 0 $ 0
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