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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. $77,000
[The following information applies to the questions displayed below) Suresh Co. expects its five departments to yield the following income for next year. Dept. $77,000 Dept. N $ 39,000 Dept. o $70,000 Dept. P $56.000 Dept. $ 38,000 Total $280,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (2015) 14,800 55,800 70.600 $ 6,400 42,400 18.600 61,000 5(22,000) 21,600 5,200 26, BOO $43,200 19,000 43,200 62,200 5(6,200) 46,800 16,800 63,600 $(25.600) 144,600 139,600 284, 200 $ (4,200) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Exercise 23-9 Part 1 (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)
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