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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.]
Suresh Company reports the following segment (department) income results for the year.
Sales
Expenses
Avoidable
Unavoidable
Total expenses
Income (loss)
Department M Department N Department 0 Department P Department T
$ 82,000
$ 44,000
$ 78,000
$ 65,000
$ 43,000
Total increase in income
17,300
57,800
75, 100
$ 6,900
45,400
21,600
67,000
$ (23,000)
18,000
5,700
23,700
51,300
20,300
71, 600
21,500
54,300
75,800
$ 54,300 $ (10,800) $ (28,600)
Total
$ 312,000
153,500
159, 700
313, 200
$ (1,200)
b. Compute the al increase in income the departments with sales less than avoidable costs, as identified in part a, are eliminated.
Transcribed Image Text:[The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department M Department N Department 0 Department P Department T $ 82,000 $ 44,000 $ 78,000 $ 65,000 $ 43,000 Total increase in income 17,300 57,800 75, 100 $ 6,900 45,400 21,600 67,000 $ (23,000) 18,000 5,700 23,700 51,300 20,300 71, 600 21,500 54,300 75,800 $ 54,300 $ (10,800) $ (28,600) Total $ 312,000 153,500 159, 700 313, 200 $ (1,200) b. Compute the al increase in income the departments with sales less than avoidable costs, as identified in part a, are eliminated.
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