! Required information Exercise 23-9 Analyzing income effects from eliminating departments LO P4 [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 Sales Expenses $77,000 Dept. N $ 39,000 Dept. O $70,000 Dept. P $56,000 Dept. T $ 38,000 Total $280,000 Avoidable 14,800 42,400 21,600 19,000 Unavoidable 55,800 18,600 5,200 43,200 46,800 16,800 144,600 139,600 Total expenses 70,600 Net income (loss) $ 6,400 61,000 $(22,000) 26,800 $43,200 62,200 $(6,200) 63,600 284,200 $(25,600) $ (4,200) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Exercise 23-9 Part 2 (2) Management eliminates departments with sales dollars that are less than avoidable expenses. Sales Expenses: DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. N Dept. O Dept. P Dept. T Total $ 0 Avoidable Unavoidable 0 0 Total expenses Net income (loss) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0