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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 $74,800 $ 40,000 $67,eee $50,000 $ 35,00 Expenses Avoidable 13,380 40,6ee 23,eee 17,500 44,180 Unavoidable 54,680 16,800 4,900 39,180 14,780 Total expenses 67,980 57,400 27,980 56,600 58,888 Net income (loss) $ 6,180 $(17,488) $39, 180 $(6,680) $(23,880) Total $266,080 138,5ee 130, 180 268, 680 $ (2,680) 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 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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