[The following information applies to the questions displayed below.) Suresh Co. expects its five departments to yield the following income for next year. Dept. M $65,000 Dept. N $ 37,000 Dept. o $58,000 Dept. P $44,000 Dept. T $ 30,000 Total $ 234,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 10,800 52,600 63,400 $ 1,600 37,600 13,800 51,400 $(14,400) 23,000 4,400 27,400 $30,600 15,000 30, 600 45,600 $(1,600) 39,600 11,200 50, 800 $(20,800) 126,000 112,600 238, 600 $ (4,600) 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 $ 0 Sales Expenses: Avoidable Unavoidable Total expenses Net income (Loss) $ 0 $ 0 $ 0 $ 0 $ CA 0 $ (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 $ 1 Total $ 0 Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss) 0 $ 1 $ 0 $ 0 $ 0 $ 0 $ 1 [The following information applies to the questions displayed below.) Suresh Co. expects its five departments to yield the following income for next year. Dept. M $65,000 Dept. N $ 37,000 Dept. o $58,000 Dept. P $44,000 Dept. T $ 30,000 Total $ 234,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 10,800 52,600 63,400 $ 1,600 37,600 13,800 51,400 $(14,400) 23,000 4,400 27,400 $30,600 15,000 30, 600 45,600 $(1,600) 39,600 11,200 50, 800 $(20,800) 126,000 112,600 238, 600 $ (4,600) 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 $ 0 Sales Expenses: Avoidable Unavoidable Total expenses Net income (Loss) $ 0 $ 0 $ 0 $ 0 $ CA 0 $ (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 $ 1 Total $ 0 Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss) 0 $ 1 $ 0 $ 0 $ 0 $ 0 $ 1