Suresh Co. expects its five departments to yield the following income for next year.

	Dept. M				Dept. N					Dept. O				Dept. P					Dept. T					Total
Sales		$	64,000			$	36,000				$	57,000			$	43,000				$	29,000			$	229,000
Expenses
Avoidable			10,300				37,000					22,700				14,500					38,700			$	123,200
Unavoidable			52,200				13,200					4,300				30,000					10,500			$	110,200
Total expenses			62,500				50,200					27,000				44,500					49,200				233,400
Net income (loss)		$	1,500			$	(14,200	)			$	30,000			$	(1,500	)			$	(20,200	)		$	(4,400	)

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. O Dept. P Total Dept. N Dept. T Sales Expenses Avoidable Unavoidable Total expenses Net income (loss)