[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. N 35,000 Dept. P $56,000 $42,000 Dept. T $ 28,000 Total $224,000 Dept. o Dept. M $63,000 Sales Expenses Avoidable Unavoidable Total expenses 9,800 51,800 61,600 36,400 12,600 49,000 22,400 4,200 26,600 14,000 29,400 43,400 37,800 9,800 47,600 $ (19,600) $120,400 $107,800 228,200 Net income (loss) $ 1,400 (14,000) $29,400 (1,400) (4,200) 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. P Dept. T Total Sales Expenses Avoidable Unavoidable Total expenses Net income (loss)
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