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Required information [The following information applies to the questions displayed below.) Suresh Company reports the following segment (department) income results for the year. Sales
Required information [The following information applies to the questions displayed below.) Suresh Company reports the following segment (department) income results for the year. Sales Expenses Department M Department N $ 65,000 $ 37,000 Department 0 $ 58,000 Department P $ 44,000 Avoidable 10,800 Unavoidable 52,600 37,600 13,800 Total expenses 63,400 51,400 23,000 4,400 27,400 15,000 30,600 45,600 Income (loss) $1,600 $ (14,400) $ 30,600 $ (1,600) $ (20,800) Department T $ 30,000 39,600 11,200 50,800 Total $ 234,000 126,000 112,600 238,600 $ (4,600) b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Total increase in income
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