Suresh Co. expects its five departments to yield the following income for next y
ID: 2514363 • Letter: S
Question
Suresh Co. expects its five departments to yield the following income for next year. Dept. o Total Dept. N $16.800 Dept. M Dept. T Dept. P $38,000 35,000 Sales Expenses $ 42,000 $ 15,600 147,400 Avoidable Unavoidable 4,800 20,000 14.500 7100 14.500 2,500 7000 14.500 18,600 59.400 5,800 49,900 Total expenses 24,800 21600 7,000 21,500 24.400 109,300 Net income (oss) 17,200 (4,800) $ 21.000 13,500 $ (8,800) 38100 Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following seporate scenarios.Explanation / Answer
Answer
DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED
Dept M
Dept N [Eliminated]
Dept O
Dept P
Dept T [Eliminated]
Total
Sales
$ 42,000.00
$ -
$ 38,000.00
$ 35,000.00
$ -
$ 1,15,000.00
Expenses:
Avoidable
$ 4,800.00
$ -
$ 14,500.00
$ 7,000.00
$ -
$ 26,300.00
Unavoidable
$ 20,000.00
$ 7,100.00
$ 2,500.00
$ 14,500.00
$ 5,800.00
$ 49,900.00
Total Expenses
$ 24,800.00
$ 7,100.00
$ 17,000.00
$ 21,500.00
$ 5,800.00
$ 76,200.00
Net Income (Loss)
$ 17,200.00
$ (7,100.00)
$ 21,000.00
$ 13,500.00
$ (5,800.00)
$ 38,800.00
DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED
Dept M
Dept N
Dept O
Dept P
Dept T [Eliminated]
Total
Sales
$ 42,000.00
$ 16,800.00
$ 38,000.00
$ 35,000.00
$ -
$ 1,31,800.00
Expenses:
Avoidable
$ 4,800.00
$ 14,500.00
$ 14,500.00
$ 7,000.00
$ -
$ 40,800.00
Unavoidable
$ 20,000.00
$ 7,100.00
$ 2,500.00
$ 14,500.00
$ 5,800.00
$ 49,900.00
Total Expenses
$ 24,800.00
$ 21,600.00
$ 17,000.00
$ 21,500.00
$ 5,800.00
$ 90,700.00
Net Income (Loss)
$ 17,200.00
$ (4,800.00)
$ 21,000.00
$ 13,500.00
$ (5,800.00)
$ 41,100.00
DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED
Dept M
Dept N [Eliminated]
Dept O
Dept P
Dept T [Eliminated]
Total
Sales
$ 42,000.00
$ -
$ 38,000.00
$ 35,000.00
$ -
$ 1,15,000.00
Expenses:
Avoidable
$ 4,800.00
$ -
$ 14,500.00
$ 7,000.00
$ -
$ 26,300.00
Unavoidable
$ 20,000.00
$ 7,100.00
$ 2,500.00
$ 14,500.00
$ 5,800.00
$ 49,900.00
Total Expenses
$ 24,800.00
$ 7,100.00
$ 17,000.00
$ 21,500.00
$ 5,800.00
$ 76,200.00
Net Income (Loss)
$ 17,200.00
$ (7,100.00)
$ 21,000.00
$ 13,500.00
$ (5,800.00)
$ 38,800.00
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