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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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[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 | Total | |||||||||||||||||||||
Sales | $ | 76,000 | $ | 38,000 | $ | 69,000 | $ | 55,000 | $ | 37,000 | $ | 275,000 | ||||||||||||||
Expenses | ||||||||||||||||||||||||||
Avoidable | 14,300 | 41,800 | 21,300 | 18,500 | 45,900 | 141,800 | ||||||||||||||||||||
Unavoidable | 55,400 | 18,000 | 5,100 | 42,600 | 16,100 | 137,200 | ||||||||||||||||||||
Total expenses | 69,700 | 59,800 | 26,400 | 61,100 | 62,000 | 279,000 | ||||||||||||||||||||
Net income (loss) | $ | 6,300 | $ | (21,800 | ) | $ | 42,600 | $ | (6,100 | ) | $ | (25,000 | ) | $ | (4,000 | ) | ||||||||||
Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios.
TULUI expenses Net income (loss) 69,790 5,189 10, 59,809 $(21,880) $ 6,380 26,469 $42,600 42,689 161, 108 w 45,989 16,189 62,080 $(25,000) $(6,109) $ Recompute and prepare the departmental income statements (including a combined total colum each of the following separate scenarios. Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. o Dept. P D ept. ales Total xpenses Avoidable Unavoidable Total expenses Net income (loss) OSOSStep by Step Solution
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