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Check my w 2 Required information Exercise 23-9 Analyzing income effects from eliminating departments LO P4 [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 $ 73,000 Dept. N $ 39,000 Dept. o $66,000 Dept. 2 $48,000 Dept. $ 34,000 Total $260,000 Sales Expenses Avoidable Unavoidable Total expenses Net 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 $ 13,400) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Exercise 23-9 Part 1 Recompute and prepare the departmental income statements (including a combined total column) for the compa under each of the following separate scenarios. Exercise 23-9 Part 1 (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 $ 0 Expenses: Avoidable 0 Unavoidable FF 0 Total expenses Net income (loss) $ 0 $ 0 $ $ 0 $ 0 Required information Exercise 23-9 Analyzing income effects from eliminating departments LO P4 (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 $73,000 Dept. N $ 39,000 Dept. o $66,000 Dept. P $48,000 Dept. 1 $ 34,000 Total $260,000 Sales Expenses Avoidable Unavoidable Total expenses Net 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) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. Exercise 23-9 Part 2 Exercise 23-9 Part 2 (2) Management eliminates departments with sales dollars that are less than avoidable expenses. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept.M Dept. N Dept. o Dept. P Dept. T Total $ 0 Sales Expenses Avoidable 0 Unavoidable 0 Total expenses Net Income (los) $ $ os 0 $ $ $

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