Required information [The following information applies to the questions displayed below.) Suresh Company reports the following segment (department) income results for the year. Departnent M DepartnentN Departnent o Departnent P $ 63,000 Departnent 7 $20,000 Total $35,000 $ 56,000 $ 42,000 $ 224,000 Sales Expensen Avoidable 9,800 51,800 61,600 36,400 12,600 49,000 $ (14,000) 22,400 4,200 26,600 $ 29,400 14,000 29,400 43,400 $ (1,400) 37,800 9,000 47,600 $ (19,600) 120,400 107, 800 220,200 Unavoidable Total expenses $ (4,200) Income (loss) $1,400 D. 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 10,700
Required information [The following information applies to the questions displayed below.) Suresh Company reports the following segment (department) income results for the year. Departnent M DepartnentN Departnent o Departnent P $ 63,000 Departnent 7 $20,000 Total $35,000 $ 56,000 $ 42,000 $ 224,000 Sales Expensen Avoidable 9,800 51,800 61,600 36,400 12,600 49,000 $ (14,000) 22,400 4,200 26,600 $ 29,400 14,000 29,400 43,400 $ (1,400) 37,800 9,000 47,600 $ (19,600) 120,400 107, 800 220,200 Unavoidable Total expenses $ (4,200) Income (loss) $1,400 D. 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 10,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
(The following information applies to the questions displayed below.)
Suresh Company reports the following segment (department) income results for the year.
Departnent M
$ 63,000
Departnent N Departnent o
$ 35,000
Department P
$ 42,000
Departnent 2
$ 20,000
Total
$ 224,000
Sales
$ 56,000
Expenses
Avoidable
Unavoidable
37,800
9,800
47,600
$ (19,600)
120,400
107, 800
226,200
14,000
36,400
12,600
49,000
22,400
9,800
51,800
61,600
$1,400
4,200
26,600
$ 29,400
29,400
43,400
$ (1,400)
Total expenses
$ (4,200)
Income (losn)
६ (14,000)
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
10,700 0
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