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Required information [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department M
Required information [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department M Department N $ 63,000 $ 35,000 Department P $ 42,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) 9,800 51,800 61,600 $ 1,400 Total increase in income 36,400 12,600 49,000 $ (14,000) Department 0 $ 56,000 22,400 4, 200 26,600 $ 29,400 14,000 29,400 43,400 $ (1,400) W Department T $ 28,000 37,800 9,800 47,600 $ (19,600) Total $ 224,000 b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. 120,400 107,800 228,200 $ (4,200)
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