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b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Answer is complete but not entirely correct. Total increase in income 58,000

b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Answer is complete but not entirely correct. Total increase in income 58,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Check my work mode: This shows what is correct of Required information [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department M Department N Department 0 $ 47,000 $ 83,000 $ 87,000 Department P $ 69,eee Sales Expenses Avoidable Unavoidable Total expenses Income (loss) 18,800 59,000 77,800 $ 9,200 47,200 23,400 70,600 $ (23,600) 18,500 6,eee 24,500 $ 58,500 Answer is complete but not entirely correct. Total increase in income $ 58,000 X 23,eee 58,500 81,500 $ (12,500) Department T $ 42,000 54,000 22,400 76,400 $ (34,400) Total $ 328,000 161,500 169,300 330.800 $ (2,800) b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.
Transcribed Image Text:Check my work mode: This shows what is correct of Required information [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department M Department N Department 0 $ 47,000 $ 83,000 $ 87,000 Department P $ 69,eee Sales Expenses Avoidable Unavoidable Total expenses Income (loss) 18,800 59,000 77,800 $ 9,200 47,200 23,400 70,600 $ (23,600) 18,500 6,eee 24,500 $ 58,500 Answer is complete but not entirely correct. Total increase in income $ 58,000 X 23,eee 58,500 81,500 $ (12,500) Department T $ 42,000 54,000 22,400 76,400 $ (34,400) Total $ 328,000 161,500 169,300 330.800 $ (2,800) b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.
[The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department M Department N Department 0 $ 87,000 $ 47,000 $ 83,000 Department P $ 69,000 Sales Expenses Avoidable Unavoidable Income (loss) Total expenses M N Department Department Department Department Department Department O P T Answer is complete and correct. Decision a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? Keep Eliminate Keep 18,800 59,000 77,800 $ 9,200 Keep Eliminate 47,200 23,400 70,600 $ (23,600) 18,500 6,000 24,500 $ 58,500 23,000 58,500 81,500 $ (12,500) Department T $ 42,000 54,000 22,400 76,400 $ (34,400) Total $ 328,000 161,500 169,300 330,800 $ (2,800)
Transcribed Image Text:[The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department M Department N Department 0 $ 87,000 $ 47,000 $ 83,000 Department P $ 69,000 Sales Expenses Avoidable Unavoidable Income (loss) Total expenses M N Department Department Department Department Department Department O P T Answer is complete and correct. Decision a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? Keep Eliminate Keep 18,800 59,000 77,800 $ 9,200 Keep Eliminate 47,200 23,400 70,600 $ (23,600) 18,500 6,000 24,500 $ 58,500 23,000 58,500 81,500 $ (12,500) Department T $ 42,000 54,000 22,400 76,400 $ (34,400) Total $ 328,000 161,500 169,300 330,800 $ (2,800)
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