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[The following information applies to the questions displayed below.] Dept. I $ 14,100 Total $138,500 Suresh Co. expects its five departments to yield the following

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[The following information applies to the questions displayed below.] Dept. I $ 14,100 Total $138,500 Suresh Co. expects its five departments to yield the following income for next year. Dept. M. Dept. N Dept. o Dept. P. Sales $ 41,000 $15,900 $33,000 $ 34,500 Expenses Avoidable 4,600 14,300 13,600 6,000 Unavoidable 18,000 7,200 2,200 15,000 18,000 5,300 $ 56,500 $ 47,700 Total expenses 22,600 21,500 15,800 21,000 23,300 104,200 Net income (loss) $ 18,400 $(5,600) $ 17,200 $ 13,500 $ (9,200) $ 34,300 Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (1) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. o Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss) (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)

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