Suresh Co. expects its five departments to yleld the following income for next year, Dept. M $65,000 Dept. N $ 37,000 Dept. o $58,000 Dept. P $44,000 Dept. T $ 30,000 Total $234,000 Sales Expensen Avoidable Unavoidable Total expenses Net income (loss) 10,800 52,600 63,400 $ 1,600 37,600 13,800 51,400 $(14,400) 23.000 4.400 27,400 $30,600 15,000 30.600 45,600 $(1,600) 39,600 11,200 50,800 $(20,800) 126,000 112,600 238,600 $ (4,600) 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 Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss) Dept.M $65,000 Dept. N $ 37,000 Dept. O $58,000 Dept. P $44,000 Dept. 1 $ 30,000 Total $234,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (108) 10.800 52,600 63,400 $ 1,600 37,600 13,800 51,400 $(14,400) 23,000 4,400 27,400 $30, 600 15,000 30, 600 45,600 $(1,600) 39,600 11,200 50.800 $(20,800) 126,000 112,600 238,600 $ (4,600) 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 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)