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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