50.1K

Verified Solution

Link Copied!

[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

Answer & Explanation Solved by verified expert

See Answer