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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 year.
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. o $56,000 Dept. P $42,000 Dept. T $ 28,000 Total $224,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 14,000 29,400 9,800 51,800 61,600 $ 1,400 36,400 12,600 49,000 $(14,000) 22,400 4,200 26,600 $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. (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 Total Sales Expenses: Avoidable Unavoidable Total expenses Net income (loss)
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