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Suresh Co. expects its five departments to yield the following income for next year. Dept. M Dept. 0 S59,000 $45,000 Dept. P Dept. N $66,000
Suresh Co. expects its five departments to yield the following income for next year. Dept. M Dept. 0 S59,000 $45,000 Dept. P Dept. N $66,000 38,000 Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses 11,300 53,000 64,300 38,200 14,400 52,600 23,300 4,500 27,800 $239,000 $128,800 67011,908 $115,000 15,500 31,200 46,700 $ 31,000 40,500 52,400 2 243,800 $ (21,400) (4,800) Net income (loss) $ 1,700(14,600) $31,200 (1,700) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios (1) Management eliminates departments with expected net losses. NE Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses Net income (loss)
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