Required information[The following information applies to the questions displayed below.]Suresh Company reports the following segment (department) Income results for the year.Department P$ 66,000SalesExpensesAvoidableUnavoidableTotal expensesIncome (loss)DepartmentDepartment MDepartment NDepartment ODepartment PDepartment TDepartment M Department N$ 85,000$ 45,000Decision17,80058,20076,000$ 9,00046,00022,20068,200$ (23,200)Department O$ 79,00019,3005,80025,100$ 53,900a. If the company plans to eliminate departments that have sales less than avoidable costs.22,00053,90075,900$ (9,900)Department T$ 39,00052,20021,00073,200$ (34,200)Total$ 314,000157,300161,100318,400$ (4,400)department(s) would be eliminated?

Avoidable costs are the type of costs that can be avoided/eliminated by shutting down the…

[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 $ 85,000 $ 45,000 Department O Department P $ 79,000 $ 66,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department P Department T 17,880 58,200 76,000 $ 9,000 Decision 46,000 22,200 68,200 $ (23,200) 19,300 5,800 25,100 $ 53,900 22,000 53,900 75,900 $ (9,900) Department T $ 39,000 52,200 21,000 73,200 $ (34,200) Total $ 314,000 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 157,300 161,100 318,400 $ (4,400)

[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 $ 85,000 $ 45,000 Department O Department P $ 79,000 $ 66,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department P Department T 17,880 58,200 76,000 $ 9,000 Decision 46,000 22,200 68,200 $ (23,200) 19,300 5,800 25,100 $ 53,900 22,000 53,900 75,900 $ (9,900) Department T $ 39,000 52,200 21,000 73,200 $ (34,200) Total $ 314,000 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 157,300 161,100 318,400 $ (4,400)

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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