
College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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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.
Sales
Expenses
Department M
$ 89,000
Department N
$ 47,000
Department o
$ 85,000
Department P
$ 73,000
Department T
$ 46,000
Total
$ 340,000
48,400
24,600
Total expenses
Income (loss)
73,000
$ 9,400
$ (26,000)
19,100
6,200
25,300
$ 59,700
24,000
55,800
167,100
59,700
23,800
174,100
83,700
79,600
341,200
$ (10,700)
$ (33,600)
$ (1,200)
Avoidable
Unavoidable
19,800
59,800
79,600
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
$ 10,800](https://content.bartleby.com/qna-images/question/dc0cfce1-e892-4734-9947-d2a95de9e1ce/c969c184-364b-40f7-85a4-f8ee61595441/ml7no3_thumbnail.png)
Transcribed Image Text: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
Department M
$ 89,000
Department N
$ 47,000
Department o
$ 85,000
Department P
$ 73,000
Department T
$ 46,000
Total
$ 340,000
48,400
24,600
Total expenses
Income (loss)
73,000
$ 9,400
$ (26,000)
19,100
6,200
25,300
$ 59,700
24,000
55,800
167,100
59,700
23,800
174,100
83,700
79,600
341,200
$ (10,700)
$ (33,600)
$ (1,200)
Avoidable
Unavoidable
19,800
59,800
79,600
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
$ 10,800
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