Seved amework 0 Required information Exercise 23-9 Analyzing income effects from eliminating departments LO P4 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 Dept. N Dept. o Dept Dept. 1 Sales $89,000 $ 47,000 $85,000 $ 73,000 $ 48,000 Expenses Avoidable 19,800 40,400 19,100 24,000 55,800 Unavoidable 59,800 24.500 6.200 52.700 23,800 Total expenses 79,600 73000 25300 700 72.600 Net income (los) $ 9,400 5(26,000) $59,700 5(10,700) (31,600) Total $342.000 44 167.100 174,100 3417200 (800) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios Exercise 23-9 Part 1 (1) Management eliminates departments with expected net losses. ces DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. P Total Depto Dept. T s 0 Sales 0 Expenses Avoidable Unavoidable 0 Total expenses Net income foss) 05 0 $ 0 $ os 0 Required Information Exercise 23-9 Analyzing income effects from eliminating departments LO P4 The following information applies to the questions displayed below) Suresh Co. expects its five departments to yield the following income for next year. Dept. Dept. Dept. Dept, P Sales $89,000 Dept. 1 $ 47,000 $05,000 $3,000 40,000 mennes Avoidable 19,000 40.400 19.100 24,000 Unavoidable 35,000 59,000 20.600 6200 3.700 23.000 Total expenses FOXCO 257200 D1200 600 Not incone (los) $(26,0001 $59,700 ${10,700) $(31,600) Total $342.000 167,100 1120100 200 (800) Recompute and prepare the departmental income statements (including a combined total column for the company under each of the following separate scenarios Exercise 23-9 Part 2 (2) Management eliminates departments with sales dollars that are less than avoidable expenses DEPARTMENTS WITH LESS SALE THAN AVOIDABLE EXPENSES ELIMINATED Dept. Dept. N Depto Dept.P Dept. T Tot 0 ws Experts Avocado Unavoidable Totale Net income (los) 0 5 05 $ 0 0