Required information

Exercise 23-9 (Algo) Segment elimination LO P4

Skip to question

[The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year.

	Department M	Department N	Department O	Department P	Department T	Total
Sales	$ 66,000	$ 38,000	$ 59,000	$ 45,000	$ 31,000	$ 239,000
Expenses
Avoidable	11,300	38,200	23,300	15,500	40,500	128,800
Unavoidable	53,000	14,400	4,500	31,200	11,900	115,000
Total expenses	64,300	52,600	27,800	46,700	52,400	243,800
Income (loss)	$ 1,700	$ (14,600)	$ 31,200	$ (1,700)	$ (21,400)	$ (4,800)

Exercise 23-9 (Algo) Part 2

b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.