Suresh Co. expects its five departments to yield the following income for next year Dept....
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Suresh Co. expects its five departments to yield the following income for next year Dept. M Dept. N Dept. O Dept. P Dept. T Total $75,000 $41,000 $68,000 $51,000 21,000 18,000 026,000 66,696 36,000 $271,000 Sales Expenses Avoidable Unavoidable Total expenses 68,800 45,000 $139,000 15,400 $134,800 273,800 6,200 $(17,600) $42,000 $(9,000) $(24,490) $ (2,800) 13,800 55,000 41,200 5,000 58,600 60,400 -26,69660,000 Net income (loss) 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 Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses Net income (loss)
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