[The following information applies to the questions displayed below.] Suresh Co. expects its five departments...
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[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
Dept. O
Dept. P
Dept. T
Total
Sales
$
76,000
$
38,000
$
69,000
$
55,000
$
37,000
$
275,000
Expenses
Avoidable
14,300
41,800
21,300
18,500
45,900
141,800
Unavoidable
55,400
18,000
5,100
42,600
16,100
137,200
Total expenses
69,700
59,800
26,400
61,100
62,000
279,000
Net income (loss)
$
6,300
$
(21,800
)
$
42,600
$
(6,100
)
$
(25,000
)
$
(4,000
)
Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios.
P4,00 Recompute and prepare the departmental income statements (including a combined total column) fort each of the following separate scenarios. Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept. M Dept. Nu Dept. o D ept. P Dept T Total ales xpenses: Avoidable Unavoidable Total expenses Net income (loss)
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