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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 Dept. N Dept. o Dept. P Dept. T Sales $65,000 $ 37,880 $58,888 $44, eee $ 30,000 Expenses Avoidable 12,800 37,600 23,00 15, eee 39,689 Unavoidable 52,689 13, Bee 4,480 38,680 11, 200 Total expenses 63,480 51,400 27,400 45,689 50,800 Net income (loss) $ 1,600 $(14,488) $30, 680 $(1,680) $(20,880) Total $234, eee 126,000 112,689 238,680 $ (4,680) Recompute and prepare the departmental income statements (including a combined total column) for the each of the following separate scenarios. mpany under (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 Expenses: Avoidable Unavoidable Total expenses Net income (loss)
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