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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. M Dept. N Dept. 0 Dept. P Dept. T Total Sales $63,000 $ 35,000 $56,000 $42,000 $ 28,000 $224,000 Expenses Avoidable 9,800 36,400 22,400 14,000 37,800 120,400 Unavoidable 51,800 12,600 4,200 29,400 9,800 107,800 Total 61,600 49,000 26,600 43,400 47,600 expenses 228, 200 Net income (loss) $ 1,400 $(14,000) $29,400 $(1,400) $(19,600) $ (4,200) 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. Total DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. o Dept. P Dept. T Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)

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