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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. M
[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 | Dept. N | Dept. O | Dept. P | Dept. T | Total | |||||||||||||||||||||
Sales | $ | 76,000 | $ | 38,000 | $ | 69,000 | $ | 55,000 | $ | 37,000 | $ | 275,000 | ||||||||||||||
Expenses | ||||||||||||||||||||||||||
Avoidable | 14,300 | 41,800 | 21,300 | 18,500 | 45,900 | 141,800 | ||||||||||||||||||||
Unavoidable | 55,400 | 18,000 | 5,100 | 42,600 | 16,100 | 137,200 | ||||||||||||||||||||
Total expenses | 69,700 | 59,800 | 26,400 | 61,100 | 62,000 | 279,000 | ||||||||||||||||||||
Net income (loss) | $ | 6,300 | $ | (21,800 | ) | $ | 42,600 | $ | (6,100 | ) | $ | (25,000 | ) | $ | (4,000 | ) | ||||||||||
Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios.
P4,00 Recompute and prepare the departmental income statements (including a combined total column) fort each of the following separate scenarios. Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. Nu Dept. o D ept. P Dept T Total ales xpenses: Avoidable Unavoidable Total expenses Net income (loss)
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