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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 $66,000 Dept. N $ 38,000 Dept. o $59,000 Dept. P $ 45,000 Dept. T $ 31,000 Total $ 239,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 11,300 53,000 64,300 $ 1,700 38,200 14,400 52,600 $(14,600) 23,300 4,500 27,800 $31,200 15,500 31,200 46,700 $(1,700) 40,500 11,900 52,400 $(21,400) 128,800 115,000 243,800 $ (4,800) 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. Dept. I. Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss) 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 $ 66,000 Dept. N $ 38,000 Dept. o $59,000 Dept. P $ 45,000 Dept. T $ 31,000 Total $239,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 11,300 53,000 64,300 $ 1,700 38,200 14,400 52,600 $(14,600) 23, 300 4,500 27,800 $31,200 15,500 31, 200 46,700 $(1,700) 40,500 11,900 52,400 $(21,400) 128,800 115,000 243,800 $ (4,800) 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 D ept. P D ept. I Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)

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