b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.
b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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K112.
![Required information
[The following information applies to the questions displayed below.]
Suresh Company reports the following segment (department) income results for the year.
Department P
$ 42,000
Sales
Expenses
Avoidable
Unavoidable
Total expenses
Income (loss)
Department M Department N
$ 63,000
$ 35,000
Total increase in income
9,800
51,800
61,600
$ 1,400
36,400
12,600
49,000
$ (14,000)
Department 0
$ 56,000
22,400
4,200
26,600
$ 29,400
14,000
29,400
43,400
$ (1,400)
Department T
$ 28,000
37,800
9,800
47,600
$ (19,600)
Total
$ 224,000
120,400 |
107,800
228, 200
$ (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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98244769-da42-4744-8f7f-e8bf8cc34788%2F41b5ad6e-1042-4905-8c48-3e2f4b9d563b%2Fay91985_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Suresh Company reports the following segment (department) income results for the year.
Department P
$ 42,000
Sales
Expenses
Avoidable
Unavoidable
Total expenses
Income (loss)
Department M Department N
$ 63,000
$ 35,000
Total increase in income
9,800
51,800
61,600
$ 1,400
36,400
12,600
49,000
$ (14,000)
Department 0
$ 56,000
22,400
4,200
26,600
$ 29,400
14,000
29,400
43,400
$ (1,400)
Department T
$ 28,000
37,800
9,800
47,600
$ (19,600)
Total
$ 224,000
120,400 |
107,800
228, 200
$ (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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