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! Required information (The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department M $ 73,000 Department N $ 39,000 Department o $ 66,000 Department P $ 48,000 Department T $ 34,000 Total $ 260,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) 12,800 54,200 67,000 $ 6,000 40,000 16,200 56,200 $ (17,200) 24,200 4,800 29,000 $ 37,000 17,000 37,000 54,000 $ (6,000) 43,200 14,000 57,200 $ (23,200) 137,200 126,200 263,400 $ (3,400) b. Compute the total increase income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Total increase in income Required information (The following information applies to the questions displayed below.) Suresh Company reports the following segment (department) income results for the year. Department M $ 73,000 Department N $ 39,000 Department o $ 66,000 Department P $ 48,000 Department T $ 34,000 Total $ 260,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) 12,800 54,200 67,000 $ 6,000 40,000 16,200 56,200 $ (17, 200) 24, 200 4,800 29,000 $ 37,000 17,000 37,000 54,000 $ 16,000) 43,200 14,000 57,200 $ (23,200) 137,200 126,200 263,400 $ (3,400) a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? Decision Department Department M Department N Department Department P Department Eliminate Keep

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