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[The following information applies to the questions displayed below.] Dept. I $14,000 Total $ 137,300...

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[The following information applies to the questions displayed below.] Dept. I $14,000 Total $ 137,300 Suresh Co. expects its five departments to yield the following income for next year. Dept. M. Dept. N Dept. o Dept. P. Sales $ 36,500 $ 16,800 $30,000 $ 40,000 Expenses Avoidable 4,500 14,500 12,900 6,000 Unavoidable 21,000 8,000 2,000 14,500 18,800 4,300 $ 56,700 $ 49,800 Total expenses 25,500 22,500 14,900 20,500 23,100 106,500 Net income (loss) $ 11,000 $ (5,700) $ 15,100 $ 19,500 $ (9,100) $ 30,800 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) 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 Expenses: Avoidable Unavoidable Total expenses Net income (loss) (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 Expenses: Avoidable Unavoidable Total expenses Net income (loss)

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