Suresh Company reports the following segment (department) income results for the year. Sales: Expenses Avoidable Unavoidable...

 

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Suresh Company reports the following segment (department) income results for the year. Sales: Expenses Avoidable Unavoidable Total expenses Income (loss) Department M $ 66,000 Department N $ 38,000 Department O $ 59,000 Department P $ 45,000 Department T $ 31,000 Total $ 239,000 11,300 53,000 64,300 38,200 14,400 52,600 23,300 15,500 4,500 27,800 31,200 46,700 40,500 11,900 128,800 115,000 52,400 243,800 $ 1,700 $ (14,600) $ 31,200 $ (1,700) $ (21,400) $ (4,800) a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Total increase in income Suresh Company reports the following segment (department) income results for the year. Sales: Expenses Avoidable Unavoidable Total expenses Income (loss) Department M $ 66,000 Department N $ 38,000 Department O $ 59,000 Department P $ 45,000 Department T $ 31,000 Total $ 239,000 11,300 53,000 64,300 38,200 14,400 52,600 23,300 15,500 4,500 27,800 31,200 46,700 40,500 11,900 128,800 115,000 52,400 243,800 $ 1,700 $ (14,600) $ 31,200 $ (1,700) $ (21,400) $ (4,800) a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Total increase in income

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