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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 $74,000 Dept. N $40,000 Dept. o $67,000 Dept. P $50,000 Dept. T $ 35,000 Total $266,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 13,300 54,600 67,900 $ 6,100 40,600 16,800 57,400 $(17,400) 23,000 4,900 27,900 $39,100 17,500 39,100 56,600 $(6,600) 44,100 14,700 58,800 $(23,800) 138,500 130,100 268,600 $ (2,600) 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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