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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 $68,000 Dept. N $ 38,000 Dept. o $65,000 Dept. P $47,000 Dept. T $ 33,000 Total $ 251,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 12,300 53,800 66,100 $ 1,900 39,400 15,600 55,000 $(17,000) 23,900 4,700 28,600 $36,400 16,500 36,400 52,900 $(5,900) 42,300 13,300 55,600 $(22,600) 134,400 123,800 258, 200 $ (7,200) 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 S 0 0 Expenses: Avoidable Unavoidable Total expenses Net income (loss) 0 S 0 S 0 S 0 $ S 0 S 0 [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 $68,000 Dept. N $ 38,000 Dept. 0 $65,000 Dept. P $47,000 Dept. T $ 33,000 Total $ 251,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 12,300 53,800 66,100 $ 1,900 39,400 15,600 55,000 $(17,000) 23,900 4,700 28,600 $36,400 16,500 36,400 52,900 $(5,900) 42,300 13,300 55,600 $(22,600) 134,400 123,800 258,200 $ (7,200) 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. DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept.M Dept. N Dept. o Dept. P Dept. T Total Sales S 0 0 Expenses: Avoidable Unavoidable Total expenses Net income (loss) 0 S 0 S 0 S 0 S 0 S 0 S 0

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