A company expects its three departments to yield the following income for next year.
|
DEPT. A
|
DEPT. B
|
DEPT. C
|
|
SALES
|
$92,000
|
$15,000
|
$87,000
|
|
EXPENSES
|
|
|
|
|
AVOIDABLE
|
73,000
|
1,000
|
36,000
|
|
UNAVOIDABLE
|
2,000
|
8,000
|
37,000
|
|
TOTAL EXPENSES
|
75,000
|
9,000
|
73,000
|
| NET INCOME (LOSS) |
$17,000 |
$6,000 |
$14,000 |
Required: compute the following independent calculations
- The effect on total company income if dept. A is eliminated.
- The effect on total company income if dept. B is eliminated.
- The effect on total company income if dept. C is eliminated.