Suresh Co. expects its five departments to yield the following income for next year. Dept. M $63,000 Dept. N $ 35,000 Dept. 0 $56,000 Dept. P $42,000 Dept. T $ 28,000 Total Sales $224,000 Expenses Avoidable 9,800 51,800 61,600 36,400 12,600 49,000 22,400 4,200 26,600 14,000 29,400 43,400 37,800 9,800 47,600 120,400 107,800 228,200 Unavoidable Total expenses 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 une each of the following separate scenarios. (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 $ 63,000 2$ 2$ 56,000 $ 42,000 $ 2$ 161,000 Expenses: O eon 22 400 Aunidable 14 000 A6 200

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
Problem 19PROB
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Avoidable
9,800
51,800
61,600
36,400
12,600
49,000
22,400
4,200
26,600
14,000
29,400
43,400
Unavoidable
37,800
9,800
47,600
$(19,600)
120,400
107,800
228,200
Total expenses
Net income (loss)
$ 1,400
$(14,000)
$29,400
$(1,400)
$ (4,200)
Recompute and prepare the departmental income statements (including a combined total column) for the company under
each of the following separate scenarios.
(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
2$
63,000 $
O $
56,000
$
42,000 $
0 $
161,000
Expenses:
Avoidable
9,800
22,400
14,000
46,200
Unavoidable
51,800
12,600
4,200
29,400
9,800:
107,800
Total expenses
61,600
12,600
26,600
43,400
9,800
154,000
Net income (loss)
1,400 $ (12,600) $
29,400 $
(1,400) $
(9,800) $
7,000
%24
Transcribed Image Text:Avoidable 9,800 51,800 61,600 36,400 12,600 49,000 22,400 4,200 26,600 14,000 29,400 43,400 Unavoidable 37,800 9,800 47,600 $(19,600) 120,400 107,800 228,200 Total expenses Net income (loss) $ 1,400 $(14,000) $29,400 $(1,400) $ (4,200) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (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 2$ 63,000 $ O $ 56,000 $ 42,000 $ 0 $ 161,000 Expenses: Avoidable 9,800 22,400 14,000 46,200 Unavoidable 51,800 12,600 4,200 29,400 9,800: 107,800 Total expenses 61,600 12,600 26,600 43,400 9,800 154,000 Net income (loss) 1,400 $ (12,600) $ 29,400 $ (1,400) $ (9,800) $ 7,000 %24
Suresh Co. expects its five departments to yield the following income for next year.
Dept. M
$63,000
Dept. N
Dept. 0
$56,000
Dept. P
$42,000
Dept. T
$ 28,000
Total
Sales
$ 35,000
$224,000
Expenses
Avoidable
9,800
51,800
61,600
$ 1,400
36,400
22,400
4,200
26,600
14,000
37,800
120,400
107,800
228,200
Unavoidable
12,600
49,000
29,400
43,400
9,800
47,600
Total expenses
Net income (loss)
$(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 unde
each of the following separate scenarios.
(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
63,000 $
O $
56,000 $
42,000
$4
0 $
161,000
Expenses:
Avoidahle
a 800
22 400
11 000
A6 200
< Prev
7
8
of 11
Next >
%24
Transcribed Image Text:Suresh Co. expects its five departments to yield the following income for next year. Dept. M $63,000 Dept. N Dept. 0 $56,000 Dept. P $42,000 Dept. T $ 28,000 Total Sales $ 35,000 $224,000 Expenses Avoidable 9,800 51,800 61,600 $ 1,400 36,400 22,400 4,200 26,600 14,000 37,800 120,400 107,800 228,200 Unavoidable 12,600 49,000 29,400 43,400 9,800 47,600 Total expenses Net income (loss) $(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 unde each of the following separate scenarios. (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 63,000 $ O $ 56,000 $ 42,000 $4 0 $ 161,000 Expenses: Avoidahle a 800 22 400 11 000 A6 200 < Prev 7 8 of 11 Next > %24
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