Required informationExercise 23-9 (Algo) Segment elimination LO P4[The following information applies to the questions displayed below]Suresh Company reports the following segment (department) income results for the year.SalesExpensesAvoidableUnavoidableTotal expensesIncome (loss)Department ODepartment PDepartment TDepartment M Department N$ 42,000$ 80,000Decision16,30057,00073,300$ 6,70044,20020,40064,600$ (22,600)Department o$ 76,000< Prev20,3005,50025,800$ 50,2006Department P$ 61,00010 of 1620,50050,20070,700$ (9,700)Exercise 23-9 (Algo) Part 1a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated?DepartmentDepartment MDepartment NDepartment T$ 41,00049,50018,90068,400$ (27,400)Next >Total$ 300,000150,800152,000302,800$ (2,800) Required informationExercise 23-9 (Algo) Segment elimination LO P4[The following information applies to the questions displayed below]Suresh Company reports the following segment (department) income results for the year.SalesExpensesAvoidableUnavoidableTotal expensesIncone (loss)Department M Department N$ 42,000$ 80,000Total increase in income16,30057,00073,300$ 6,70044,20020,40064,600$ (22,600)Department PDepartment 0$ 61,000$ 76,00020,3005,50025,800$ 50,20020,50050,20070,700$ (9,700)Department T$ 41,00049,50018,90068,400$ (27,400))Total$ 300,000150,800152,000302,800$ (2,800)Exercise 23-9 (Algo) Part 2b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.

Avoidable Costs -Avoidable costs are those costs that can be avoided if a company wishes to do so.…

Required information Exercise 23-9 (Algo) Segment elimination LO P4 [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 Department M Department N Department O Department P Department T Department M Department N $ 42,000 $ 80,000 Decision 16,300 57,000 73,300 $ 6,700 44,200 20,400 64,600 $ (22,600) Department O $ 76,000 20,300 5,500 25,800 $ 50,200 Department P $ 61,000 20,500 50,200 70,700 $ (9,700) Department T $ 41,000 49,500 18,900 68,400 $ (27,400) Total $ 300,000 Exercise 23-9 (Algo) Part 1 a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminates 150,800 152,000 302,800 $ (2,800)

Required information Exercise 23-9 (Algo) Segment elimination LO P4 [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 Department M Department N Department O Department P Department T Department M Department N $ 42,000 $ 80,000 Decision 16,300 57,000 73,300 $ 6,700 44,200 20,400 64,600 $ (22,600) Department O $ 76,000 20,300 5,500 25,800 $ 50,200 Department P $ 61,000 20,500 50,200 70,700 $ (9,700) Department T $ 41,000 49,500 18,900 68,400 $ (27,400) Total $ 300,000 Exercise 23-9 (Algo) Part 1 a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminates 150,800 152,000 302,800 $ (2,800)

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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