[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)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.2E: Divisional income statements The following data were summarized from the accounting records for...
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