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Required Information The following information applies to the questions displayed below] Suresh Co. expects its five departments to yleld the following income for next year.
Required Information The following information applies to the questions displayed below] Suresh Co. expects its five departments to yleld the following income for next year. Dept. $89,000 Dept. N $ 47,000 Dept. $85,000 Dept. $ 48,000 Tot $342.000 Sales Expenses Avoidable Unavoidable Total expenses Net Income (less) 19,800 59,800 79,600 $ 9,400 48,400 24,600 73,000 $(26,000) 19, 100 6,200 25,300 559,700 Dept. $ 73,000 24,000 59,7 83 760 (10,7) 55,00 23, 29,600 $(31,600) 167,100 174.100 341,200 $ (0) 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 NELLOSSES ELIMINATED Dept M Dept. N Depto Dept. Dept T Total Sales Expenses $89,000 Den $ 47,000 $85,000 73,000 $ 48,000 $342.000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 19,800 59,800 79,600 $ 9,400 48,400 24,600 73,000 $(26,080) 19,100 6,200 25,300 $59,700 24,000 59,700 83,700 $(10.700) 55,800 23,00 79,600 $(31,660) 167,100 174,100 341,200 $ (100) Recompute and prepare the departmental Income statements (including a combined total column) for the company under each of the following separate scenarios. (1) Management ellminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NETLOSSES. FLIMINATED Dept. M Dept. N Dept. o DepLP Total Dept. Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 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. $89, eee Dept. N $ 47, ese Dept. o 585,000 Dept. p $ 73, eee Dept $ 48,00 Total 5342, BD Sales Expenses Avoidable Unavoidable Total expenses Net income (los) 19,800 59, Bee 29,600 $ 9,400 48,400 24,600 23,888 (26,eee) 19,100 6,200 25,300 559,789 24,000 59,700 83,700 $(10,700) 55,800 23,00 79,600 $(31,680) 162, 1ee 174,100 341,200 (300) 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 WITHLESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. o Dept P Dept. T Total Sales Expenses Avoidable Total expenses Net Income (los) 79,60 $ 9,400 73,000 $(26, 000) 25,300 $59,700 83,700 $(10,700) 79. GBA $(31.600) 141,200 5 (a) Recompute and prepare the departmental Income statements (including a combined total column) for the company unde each of the following separate scenarios. (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITHLESS SALE THAN AYOLDABLE EXPENSES ELIMUMATED Dept M Dept. N Depto Dople Dent Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)
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