,000 $ 39,000 $ 70,000 $ 56,000 $ 38,000 $ 280,000 Expenses             Avoidable 14,800 42,400 21,600 19,000 46,800 144,600 Unavoidable 55,800 18,600 5,200

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Suresh Company reports the following segment (department) income results for the year.
 

  Department M Department N Department O Department P Department T Total
Sales $ 77,000 $ 39,000 $ 70,000 $ 56,000 $ 38,000 $ 280,000
Expenses            
Avoidable 14,800 42,400 21,600 19,000 46,800 144,600
Unavoidable 55,800 18,600 5,200 43,200 16,800 139,600
Total expenses 70,600 61,000 26,800 62,200 63,600 284,200
Income (loss) $ 6,400 $ (22,000) $ 43,200 $ (6,200) $ (25,600) $ (4,200)


 

 

 

b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.

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Net Income -

Net income is the remaining amount after costs of products sold and other expenses have been subtracted from a company's revenue.

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