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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.

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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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