Suresh Co. expects its five departments to yield the following income for next year. Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) Dept. M Dept. N Dept. o Dept. P Dept. T Total $87,000 $ 47,000 $83,000 $ 69,000 $ 46,000 $332,000 18,800 47,200 18,500 23,000 54,000 161,500 59,000 23,400 6,000 58,500 22,400 169,300 77,800 70,600 24,500 81,500 76,400 330,800 $ 9,200 $(23,600) $58,500 $(12,500) $(30,400) $ (1,200) 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. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. o Dept.P Dept. T Total $ 0 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Suresh Co. expects its five departments to yield the following income for next year. Dept. M $87,000 Dept. N $ 47,000 Dept. o $83,000 Dept. P $ 69,000 Dept. 1 $ 46,000 Total $332,000 Salen Expenses Avoidable Unavoidable Total expenses Net income (Loss) 18,800 47,200 59,000 23, 400 77,800 70,600 $ 9,200 $(23,600) 18,500 23,000 54,000 161,500 6,000 58,500 22,400 169,300 24,500 81,500 76,400 330,800 $58,500 $(12,500) $(30,400) $ (1,200) 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 ellminates departments with sales dollars that are less than avoidable expenses. Total DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept M Dept. N Dept. o Dept.P Dept. T Sales Expenses: Avoidable Unavoidable Total expenses Net Income (loss)