Question: IThe following information applies to the questions displayed below Suresh Co. expects its five departments to yield the following income for next year. Dept. MDept.

IThe following information applies to the questions displayed below Suresh Co. expects its five departments to yield the following income for next year. Dept. MDept. NDept. 0Dept.PDept.TTotal Sales Expenses $74,000 40,000 $67,000 $50,000 35,000 $266,000 44,100$138,500 56,6008,800268,600 40,600 Avoidable Unavoidable Total expenses 13,300 54,60016,800 67.900 23,00017,500 4,900 39,100 14,700 $130,100- 57,400 -- Net income (loss) s 6,100 $(17,400) $39,100 $(6,600) $ (23,800) (2,600) 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. DEPARTMENTSWTHLESS SALES THAN AVODABLE-EXPENSESELIMINATED Dept. M Dept, N Dept O Dept. P Dept. T Sales Expenses: Avoidable Total expenses Net income (loss)
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