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Suresh Co. expects its five departments to yield the following income for next year. Dept. P $51,000 Dept. M $75,000 Dept. N 41,000 Dept. 0
Suresh Co. expects its five departments to yield the following income for next year. Dept. P $51,000 Dept. M $75,000 Dept. N 41,000 Dept. 0 $68,000 Dept. T 36,000 Total $271,000 Sales Expenses 13,800 55,000 68,800 $6,200 18,000 42,000 60,000 $(9,000) 41,200 17,400 58,600 21,000 5,000 26,000 $139,000 $134,800 273,800 $(2,800) Avoidable 45,000 15,400 60,400 $(24,400) Unavoidable Total expenses $(17,600) $42,000 Net income (1oss) Recompute and prepare the departmental income statements (including a combined total column) for the company u each of the following separate scenarios. xercise 23-10 Part 2 ) Management eliminates departments with sales dollars that are less than avoidable expenses DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. O Dept. T Dept. M Dept. N Dept. P Total Sales 10 Expenses: Avoidable Unavoidable Total expenses 0$ Net income (loss) $ C EA
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