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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 $85,000 Dept. N $ 45,000 Dept. o $ 79,000 Dept. P $ 66,000 Dept. T $ 44,000 Total $319,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 17,800 58,200 76,000 $ 9,000 46,000 22,200 68,200 $(23,200) 19,300 5,800 25, 100 $53,900 22,000 53,900 75,900 $(9,900) 52,200 21,000 73,200 $(29,200) $157,300 $161,100 318,400 $ (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 D ept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses | Net income (loss) $ 0 $ 0 $ 0 $ ol o l $ 0 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 $85,000 Dept. N $ 45,000 Dept. 0 $ 79,000 Dept. P $66,000 D ept. T $ 44,000 Total $319,000 46,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 8200 19,300 5,800 22,200 17,800 58, 200 76,000 $ 9,000 25 100 22,000 53,900 75.900 $(9,900) 68,200 $(23,200) 75, 52,200 21,000 73.200 $(29,200) $157,300 $161,100 318,400 $ (600) $53,900 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. I Total Sales | $ Expenses: Avoidable Unavoidable Total expenses Net income (loss) $ 0 $ 0 $ 0 $ 0 $ 0 $
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