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[The following information applies to the questions displayed below.) Suresh Co. expects its five departments to yield the following income for next year. Dept. $38,000
[The following information applies to the questions displayed below.) Suresh Co. expects its five departments to yield the following income for next year. Dept. $38,000 Dept. N $17,500 Dept. $38,500 Dept: $15.400 Total $142,900 Sales Expenses Avoidable Unavoidable Total expenses Net income (108) 4,100 18,000 22, 100 $15,900 18,800 8,200 27,000 $(9,500) Dept. o $33,500 10,900 2,800 13,700 $19,800 16,000 29,500 45,500 $(2.000) 18,700 $ 68,500 4,000 $ 62,500 22,700 131,000 $(7,300) $ 11,900 Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Exercise 25-25 Part 2 (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 Depto Dept. P Deptit Total Sales Expenses Avoidable Unavoidable Total expenses Net income (loss)
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