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		$	73,000			$	39,000				$	66,000			$	48,000				$	34,000			$	260,000
Expenses
Avoidable			12,800				40,000					24,200				17,000					43,200			$	137,200
Unavoidable			54,200				16,200					4,800				37,000					14,000			$	126,200
Total expenses			67,000				56,200					29,000				54,000					57,200				263,400
Net income (loss)		$	6,000			$	(17,200	)			$	37,000			$	(6,000	)			$	(23,200	)		$	(3,400	)

Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios.

Exercise 23-10 Part 1

(1) Management eliminates departments with expected net losses.

(2) Management eliminates departments with sales dollars that are less than avoidable expenses.

DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED
	Dept. M	Dept. N	Dept. O	Dept. P	Dept. T	Total
Sales
Expenses:
Avoidable
Unavoidable
Total expenses
Net income (loss)

DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED
	Dept. M	Dept. N	Dept. O	Dept. P	Dept. T	Total
Sales						$0
Expenses:
Avoidable						0
Unavoidable						0
Total expenses
Net income (loss)	$0	$0	$0	$0	$0	$0