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Suresh Company reports the following segment (department) income results for the year. Sales Expenses Department M $ 74,000 Department N $ 40,000 Department O
Suresh Company reports the following segment (department) income results for the year. Sales Expenses Department M $ 74,000 Department N $ 40,000 Department O $ 67,000 Department P $ 50,000 Avoidable Unavoidable 13,300 Total expenses Income (loss) 54,600 67,900 40,600 16,800 57,400 23,000 4,900 27,900 17,500 39,100 56,600 $ 6,100 $ (17,400) $ 39,100 $ (6,600) $ (23,800) Department T $ 35,000 44,100 14,700 58,800 Total $ 266,000 138,500 130,100 268,600 $ (2,600) a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? Department Decision Department M Department N Department O Department P Department T b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Total increase in income
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