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 $73,000 Dept. 0 $66,000 Dept. P $ 48,000 Dept. T $34,000 Dept. N $ 39,000 Total Sales $260,000 Expenses Avoidable Unavoidable Total expenses $137,200 $126,200 263,400 12,800 54,200 67,000 40,000 16,200 56,200 24,200 4,800 17,000 37,000 54,000 43,200 14,000 57,200 29,000 $6,000 (17,200) $37,000 $ (6,000) $(23,200) $(3,400) Net income (loss) 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. Answer is complete and correct. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total 73,000 $ 66,000 $ 139,000 $ $ 0 Sales 0 Expenses 12,800 54,200 24,200 4,800 Avoidable 0 37,000 16,200 37,000 Unavoidable 14,0000 126,200 Total expenses 67,000 16,200 29,000 37,000 14,000 163,200 $ (37,000) $ (14,000) $ (24,200) S Net income (loss) 6,000 (16,200) 37,000 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. Total $260,000 Dept. M $73,000 Dept. P $48,000 Dept. T $34,000 Dept. N $ 39,000 Dept. O $66,000 Sales Expenses Avoidable Unavoidable 17,000 37,000 12,800 54,200 67,000 24,200 4,800 29,000 40,000 16,200 56,200 43,200 14,000 57,200 $137,200 $126,200 263,400 Total expenses 54,000 $ (17,200) $ (3,400) $ (23,200) $6,000 $37,000 $ (6,000) Net income (loss) 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. N Dept. T Dept.M Dept. O Dept.P Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)