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! Required information [The following information applies to the questions displayed below.) Suresh Co. expects its five departments to yield the following income for next
! Required information [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 $63,000 Dept. N $ 35,000 Dept. 0 $56,000 Dept. P $42,000 Dept. T $ 28,000 Total $224,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 9,800 51,800 61,600 $ 1,400 36,400 12,600 49,000 $(14,000) 22,400 4,200 26,600 $29,400 14,000 29,400 43,400 $(1,400) 37,800 9,800 47,600 $(19,600) 120,400 107,800 228, 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. (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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