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Suresh Co. expects its five departments to yield the following income for next year. Dept. N $ 35,000 Dept. P $42,000 Total Dept. M

Suresh Co. expects its five departments to yield the following income for next year Dept. P $56,000 $42,000 Dept. o Dept. T $ 28,000 Total $224,000 Dept. M Dept. N Sales $63,000 35,000 Expenses Avoidable Unavoidable Total expenses 9,800 51,800 61,600 36,400 12,600 49,000 14,000 29,400 43,400 $29,400 (1,400) 22,400 4,200 26,600 37,800 9,800 47,600 $ (19,600) $120,400 S107,800 228,200 Net income (loss) $ 1,400 (14,000) (4,200) 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. N Dept. O Dept. P Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 

Suresh Co. expects its five departments to yield the following income for next year. Dept. N $ 35,000 Dept. P $42,000 Total Dept. M $63,000 Dept. O $56,000 Dept. T Sales $ 28,000 $224,000 Expenses Avoidable 9,800 51,800 36,400 12,600 22,400 4,200 14,000 37,800 $120,400 Unavoidable 29,400 9,800 $107,800 Total expenses 61,600 49,000 26,600 43,400 47,600 228,200 Net income (loss) $ 1,400 $(14,000) $29,400 $(1,400) $(19,600) $ (4,200) 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. N Dept. O Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)

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