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omework Saved Required informatiorn Exercise 23-10 Analysis of income effects from eliminating departments LO A1...

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omework Saved Required informatiorn Exercise 23-10 Analysis of income effects from eliminating departments LO A1 [The following information applies to the questions displayed below) Suresh Co. expects its five departments to yield the following income for next year Sales Expenses Dept. .MDept. NDept. Dept. P $ 65,000 Dept. T 43,eeg Total $312,eee 382,000 $78,000 18,800 23,708 $ 44,000 $ Avoidable Unavoidable Total expenses 17,300 45,48ee 21,680 67,88e 1,300 $153,5e0 57,800 75,100 21,500 5,78 54,3e8 75,800 20, ??? $159,780 Eaa313,286 71,600 Net income (loss) S 6,900 $(23,e88) $54, 308 (,800) I s(28,680) (1,208) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios Exercise 23-10 Part 1 (1) Managerment eliminates departments with expected net losses DEPARTMENTS-WITH EXPECTED NETLOSSES ELIMINATED Dept. M Dept. N Dept O Dept. P Dept. T Total Sales Avoidable Unavoidable Total expenses Net income (loss) 0 $

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