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Suresh Company reports the following segment (department) income results for the year. Department M Department N $ 87,000 $ 47,000 Department P $ 69,000 Sales
Suresh Company reports the following segment (department) income results for the year. Department M Department N $ 87,000 $ 47,000 Department P $ 69,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) 18,800 59,000 77,800 $ 9,200 Total increase in income 47,200 23,400 70,600 $ (23,600) I Department 0 $ 83,000 18,500 6,000 24,500 $ 58,500 23,000 58,500 81,500 $ (12,500) Department T $ 42,000 54,000 22,400 76,400 $ (34,400) Total $328,000 b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminate 161,500 169,300 330,800 $ (2,800)
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