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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 | $ | 63,000 | $ | 35,000 | $ | 56,000 | $ | 42,000 | $ | 28,000 | $ | 224,000 | ||||||||||||||
Expenses | ||||||||||||||||||||||||||
Avoidable | 9,800 | 36,400 | 22,400 | 14,000 | 37,800 | $ | 120,400 | |||||||||||||||||||
Unavoidable | 51,800 | 12,600 | 4,200 | 29,400 | 9,800 | $ | 107,800 | |||||||||||||||||||
Total expenses | 61,600 | 49,000 | 26,600 | 43,400 | 47,600 | 228,200 | ||||||||||||||||||||
Net income (loss) | $ | 1,400 | $ | (14,000 | ) | $ | 29,400 | $ | (1,400 | ) | $ | (19,600 | ) | $ | (4,200 | ) | ||||||||||
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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(2) | Management eliminates departments with sales dollars that are less than avoidable expenses. |
IThe 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. P Total Dept. T $28,000 Dept. N Dept. O Sales Expenses $ 63.000 35,000 $56,000 42,000 $224.000 36,400 Avoidable Unavoidable 9.800 51.800 22.400 4,200 14,000 37800 120.400 12.600 49,000 Net income(oss 1400 (14,000) 29.400 43.400 $29,400 1.400) 9,800 107.800 228,200 $(19,600) (4,200) Total expenses 61600 26,600 47,600 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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