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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. Department M
Required information [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department M $ 76,000 Department N $ 38,000 Department 0 $ 69,000 Department P $ 55,000 Department T $ 37,000 Total $ 275,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) 14, 300 55, 400 69, 700 $ 6,300 41, 800 18,000 59, 800 $ (21,800 21, 300 5, 100 26, 400 $ 42, 600 18,500 42, 600 61, 100 $ (6, 100 45, 900 16, 100 62,000 $ (25, 000) 141, 800 137,200 279,000 $ (4,000) 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 7,000
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