Required information (The following information applies to the questions displayed below.] Suresh Co. expects its...
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Required information (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 Dept. N $75,000 41,000 Dept. o Dept. P $68,000 $51,000 Dept. T Total $271,000 Sales Expenses $ 36,000 45,000 15,400 Avoidable Unavoidable Total expenses 13,800 55,000 68,800 41,200 17,400 58,600 21,000 5,000 26,000 18,000 42,000 60,000 $139,000 $134,800 273,800 60,400 Net income (loss) $6,200 (17,600) 42,000 $ (9,000) (24,400) (2,800) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios (1) Management eliminates departments with expected net losses DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept. M Dept. N Dept. O Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses Net income (loss)
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