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Suresh Company reports the following segment (department) income results for the year. Department M Department N Department O Department P Department T Total Sales $
Suresh Company reports the following segment (department) income results for the year.
Department M | Department N | Department O | Department P | Department T | Total | |
---|---|---|---|---|---|---|
Sales | $ 68,000 | $ 38,000 | $ 65,000 | $ 47,000 | $ 33,000 | $ 251,000 |
Expenses | ||||||
Avoidable | 12,300 | 39,400 | 23,900 | 16,500 | 42,300 | 134,400 |
Unavoidable | 53,800 | 15,600 | 4,700 | 36,400 | 13,300 | 123,800 |
Total expenses | 66,100 | 55,000 | 28,600 | 52,900 | 55,600 | 258,200 |
Income (loss) | $ 1,900 | $ (17,000) | $ 36,400 | $ (5,900) | $ (22,600) | $ (7,200) |
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 net income: _____
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