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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. (1) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. o Dept. P D ept. I Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)
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