Mango & Associates expects the below departments to make the following income for the upcoming year....

Mango & Associates expects the below departments to make the following income for the upcoming year. Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales $ 67,000 $ 37,000 $ 60,000 $ 46,000 $ 32,000 $ 242,000 Expenses Avoidable 11,800 38,800 23,600 16,000 41,400 $ 131,600 Unavoidable 53,400 15,000 4,600 31,800 12,600 $ 117,400 Total expenses 65,200 53,800 28,200 47,800 54,000 249,000 Net income (loss) $ 1,800 $ (16,800 ) $ 31,800 $ (1,800 ) $ (22,000 ) $ (7,000 ) Recompute & prepare departmental income statements (which should include a combined total column) for Mango & Associates taking each of the following separate scenarios into consideration. Part 1 Mango & Associates' management decided to get rid of departments with expected net losses. Part 2 Mango & Associates' management decided to get rid of departments with sales dollars that are less than avoidable expenses.

Expert Solution

ekkarill92 answered 2 months ago

Suresh Co. expects its five departments to yield the following income for next year.

Suresh Co. expects its five departments to yield the following income for next year.Dept. MDept. NDept. ODept. PDept. TTotalSales$89,000$47,000$85,000$73,000$48,000$342,000ExpensesAvoidable19,80048,40019,10024,00055,800167,100Unavoidable59,80024,6006,20059,70023,800174,100Total expenses79,60073,00025,30083,70079,600341,200Net income (loss)$9,400$(26,000)$59,700$(10,700)$(31,600)$(800)Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios.(2) Management eliminates departments with sales dollars that are less than avoidable expenses.

Suresh Co. expects its five departments to yield the following income for next year. Dept. M...

Suresh Co. expects its five departments to yield the following income for next year. Dept. M Dept. N Dept. O Dept. P Dept. T Total Sales $ 82,000 $ 44,000 $ 78,000 $ 65,000 $ 43,000 $ 312,000 Expenses Avoidable 17,300 45,400 18,000 21,500 51,300 $ 153,500 Unavoidable 57,800 21,600 5,700 54,300 20,300 $ 159,700 Total expenses 75,100 67,000 23,700 75,800 71,600 313,200 Net income (loss) $ 6,900 $ (23,000 ) $ 54,300 $ (10,800 ) $ (28,600 ) $...

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