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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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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 $65,000 Dept. N $ 37,000 Dept. 0 $58,000 Dept. P $44,000 Dept. T $ 30,000 Total $ 234,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (los) 10.800 $2,600 63,400 $ 1,600 37.600 13,800 51,400 $(14,400 23,000 4,400 27.400 $30,600 15,000 30, 600 45,600 $(1,600) 39,600 11,200 50.800 5 (20,800) 126,000 112,600 238,600 $ 4,600) 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 Total DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. o Dept. P Dept. Sales Ernangan Prex (2) Management eliminates departments with sales dollars that are less than avoidable expenses. Total DEPARTMENTS WITHIESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. Dept. P Dept. T $ 0 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 0 0 0 0 $ 0 S $ 05 $ $ ho

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