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Required information [The following information applies to the questions displayed below.] Suresh Co. expects its...

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Accounting

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Required information [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 $76,000 Dept. N $ 38,000 Dept. 0 $69,000 Dept. P $55,000 Dept. T $ 37,000 Total $275,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 14,300 55,400 69, 700 $ 6,300 41,800 18,000 59,800 $(21,800) 21,300 5, 100 26,400 $42,600 18,500 42,600 61, 100 $(6,100) 45,900 16, 100 62,000 $(25,000) 141,800 137,200 279,000 $ (4,000) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (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 0 Total expenses Net income (loss) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 (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 $ 0 Expenses: Avoidable 0 O Unavoidable Total expenses Net income (loss) O $ $ 0 $ 0 $ 0 $ 0 GA 0

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