Suresh Company reports the following segment (department) income results for the year. Department M Department N $ 76,000 $ 38,000 Department 0 Department P $ 69,000 $ 55,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) 14,300 55,400 69,700 $ 6,300 Total increase in income 41,800 18,000 59,800 $ (21,800) TE 21,300 5,100 26,400 $ 42,600 18,500 42,600 61,100 $ (6,100) Department T $ 37,000 45,900 16, 100 62,000 $ (25,000) Total $ 275,000 b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. 141,800 137,200 279,000 $ (4,000)

Suresh Company reports the following segment (department) income results for the year. Compute the fotal increase in income if the departments with sales lss than avoidable costs, as identified in part a, are eliminated