Question
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 | $ 79,000 | $ 41,000 | $ 72,000 | $ 60,000 | $ 40,000 | $ 292,000 |
| Expenses | ||||||
| Avoidable | 15,800 | 43,600 | 20,000 | 20,000 | 48,600 | 148,000 |
| Unavoidable | 56,600 | 19,800 | 5,400 | 46,600 | 18,200 | 146,600 |
| Total expenses | 72,400 | 63,400 | 25,400 | 66,600 | 66,800 | 294,600 |
| Income (loss) | $ 6,600 | $ (22,400) | $ 46,600 | $ (6,600) | $ (26,800) | $ (2,600) |
Compute the total increase in income if the departments with sales less than avoidable costs, are eliminated.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
