Chapter 23 Saved Help Save & Exit Subm Check my work 7 Suresh Co. expects its fi

Question

Chapter 23 Saved Help Save & Exit Subm Check my work 7 Suresh Co. expects its five departments to yield the following income for next year. Dept. Min:Dept. ?E11Dept. O, $79,00041,000 $ Dept. PI Dept. t total Sales Expenses $72,000 60,000 20,000 40,000 $292,000 Part 1 of 2 Avoidable Unavoidable Total expenses 15,800 43,600 20,000 48,600 $148,000 06,600 19,800 5,400 46,600 18,200 $146,600 294,600 2,400 25,40066,60066,800 Net income (loss) ?6,600-2,-) s 6,600 $(22,400) $46, 600 (6,600) $46,600 ?6,600, $(26, 800) (2,600) 1.25 points Recompute and prepare the departmental income statements (ncluding a combined total column) for the company under each of the following separate scenarios. eBook Hint Print (1) Management eliminates departments with expected net losses Dept. M Dept. N Dept O Dept. P Dept. T Total Sales Total expenses Net income (loss) Prex7 8 of 10Next>

Explanation / Answer

DEPARTMENT M AND DEPARTMENT O HAVE THE ONLY POSITIVE FIGURE So we can prepare the only for the these Dept. M Dept. O Total Sales $              79,000 $                     72,000 $         1,51,000 Expenses Avoidable   $              15,800 $                     20,000 $             35,800 unavoidable $              56,600 $                        5,400 $             62,000 Total Expenses $              72,400 $                     25,400 $             97,800 Net income   $                6,600 $                     46,600 $             53,200

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