[The following information applies to the questions displayed below.] Suresh Co....
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Accounting
[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
Dept. N
Dept. O
Dept. P
Dept. T
Total
Sales
$
63,000
$
35,000
$
56,000
$
42,000
$
28,000
$
224,000
Expenses
Avoidable
9,800
36,400
22,400
14,000
37,800
$
120,400
Unavoidable
51,800
12,600
4,200
29,400
9,800
$
107,800
Total expenses
61,600
49,000
26,600
43,400
47,600
228,200
Net income (loss)
$
1,400
$
(14,000
)
$
29,400
$
(1,400
)
$
(19,600
)
$
(4,200
)
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.
IThe following Information applies to the questions displayed below.] Suresh Co. expects its five departments to yield the following income for next year Dept. M Dept. P Total Dept. T $28,000 Dept. N Dept. O Sales Expenses $ 63.000 35,000 $56,000 42,000 $224.000 36,400 Avoidable Unavoidable 9.800 51.800 22.400 4,200 14,000 37800 120.400 12.600 49,000 Net income(oss 1400 (14,000) 29.400 43.400 $29,400 1.400) 9,800 107.800 228,200 $(19,600) (4,200) Total expenses 61600 26,600 47,600 Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios
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