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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. 0 $56,000 Dept. P $42,000 Dept. T Total $ 28,000 $224,000 Dept. M Dept. N Sales $63,000 $ 35,000 Expenses Avoidable 9,800 36,400 Unavoidable 51,800 12,600 Total 61,600 49,000 expenses Net income $ 1,400 $(14,000) (loss) 22,400 4,200 26,600 14,000 29,400 43,400 37,800 9,800 47,600 120,400 107,800 228,200 $29,400 $(1,400) $(19,600) $ (4,200) 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. T Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)
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