Required information. [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 $ 76,000 Decision 14,300 55,400 69,700 $ 6,300 Department N Department 0. Department P Department T $ 38,000 $ 69,000 $ 55,000 $ 37,000 41,800 18,000 59,800 $ (21,800) 21,300 5,100 26,400 $ 42,600 18,500 42,600 61,100 $(6,100) 45,900 16,100 62,000 $(25,000) a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? Total $ 275,000 141,800 137,200 279,000 $ (4,000)
Required information. [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 $ 76,000 Decision 14,300 55,400 69,700 $ 6,300 Department N Department 0. Department P Department T $ 38,000 $ 69,000 $ 55,000 $ 37,000 41,800 18,000 59,800 $ (21,800) 21,300 5,100 26,400 $ 42,600 18,500 42,600 61,100 $(6,100) 45,900 16,100 62,000 $(25,000) a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? Total $ 275,000 141,800 137,200 279,000 $ (4,000)
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.
Department M Department N
$ 76,000
$ 38,000
Sales
Expenses
Avoidable
Unavoidable
Total expenses
Income (loss)
14,300
55,400
69,700
$ 6,300
Decision
41,800
18,000
59,800
$(21,800)
Department 0
$ 69,000
21,300
5,100
26,400
$ 42,600
Department P Department T
$ 55,000
$ 37,000
18,500
42,600
61,100
$ (6,100)
45,900
16,100
62,000
$(25,000)
Total
$ 275,000
141,800
137,200
279,000
$ (4,000)
a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated?
Department
Department M
Department N
Department O
Department P
Department T](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa71fdef6-625b-4f6b-ba60-dc697dcf35aa%2F828cd832-f3ff-4853-ad50-6e957eac8026%2Fyq1kif_processed.jpeg&w=3840&q=75)
Transcribed Image Text:S
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
$ 76,000
$ 38,000
Sales
Expenses
Avoidable
Unavoidable
Total expenses
Income (loss)
14,300
55,400
69,700
$ 6,300
Decision
41,800
18,000
59,800
$(21,800)
Department 0
$ 69,000
21,300
5,100
26,400
$ 42,600
Department P Department T
$ 55,000
$ 37,000
18,500
42,600
61,100
$ (6,100)
45,900
16,100
62,000
$(25,000)
Total
$ 275,000
141,800
137,200
279,000
$ (4,000)
a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated?
Department
Department M
Department N
Department O
Department P
Department T
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