Suresh Company reports the following segment (department) income results for the year. Department o $ 79,000...

 

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Suresh Company reports the following segment (department) income results for the year. Department o $ 79,000 Department P $ 66,000 Total Department M $ 85,000 $ 314,000 Sales Expenses Avoidable 17,800 58, 200 19,300 5,800 22,000 53,900 75,900 157,300 161,100 Unavoidable Total expenses Income (loss) 76,000 25,100 318,400 $ 9,000 $ 53,900 $ (9,900) $ (4,400) 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 $ (800) Suresh Company reports the following segment (department) income results for the year. Department o $ 79,000 Department P $ 66,000 Total Department M $ 85,000 $ 314,000 Sales Expenses Avoidable 17,800 58, 200 19,300 5,800 22,000 53,900 75,900 157,300 161,100 Unavoidable Total expenses Income (loss) 76,000 25,100 318,400 $ 9,000 $ 53,900 $ (9,900) $ (4,400) 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 $ (800)

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Answer Solution Formula Total increase in income Income loss when departments with sales less than a... View the full answer