Suresh Co. expects its five departments to yield the following income for next year. Dept. N...
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Suresh Co. expects its five departments to yield the following income for next year. Dept. N $ 35,000 Dept. P $42,000 Total Dept. M $63,000 Dept. O $56,000 Dept. T Sales $ 28,000 $224,000 Expenses Avoidable 9,800 51,800 36,400 12,600 22,400 4,200 14,000 37,800 $120,400 Unavoidable 29,400 9,800 $107,800 Total expenses 61,600 49,000 26,600 43,400 47,600 228,200 Net income (loss) $ 1,400 $(14,000) $29,400 $(1,400) $(19,600) $ (4,200) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (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) Suresh Co. expects its five departments to yield the following income for next year. Dept. N $ 35,000 Dept. P $42,000 Total Dept. M $63,000 Dept. O $56,000 Dept. T Sales $ 28,000 $224,000 Expenses Avoidable 9,800 51,800 36,400 12,600 22,400 4,200 14,000 37,800 $120,400 Unavoidable 29,400 9,800 $107,800 Total expenses 61,600 49,000 26,600 43,400 47,600 228,200 Net income (loss) $ 1,400 $(14,000) $29,400 $(1,400) $(19,600) $ (4,200) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (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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Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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