13 Required information Exercise 6-16 Working with a Segmented Income Statement: Break-Even Analysis (L06-4, LO6-5) The following information applies to the questions displayed below) Raner, Harris & Chan is a consulting firm that specializes in Information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting Jobs as variable costs. A contribution format segmented Income statement for the company's most recent year is given: Ofte Total company Chicago Minneapol Sales $ 825,000 100.00 $ 165,000 1000 $ 660,000 1001 Variable expenses 445,500 54.00 49.500 300 396000 Contribution margin 379,500 46.01 115,500 700 264,000 Traceable fixed expenses 184,800 22.44 05.00 525 99,000 office segment margin 194,700 $ 29,700 188 165,000 250 Common fixed expenses nat traceable to office 132,000 16.04 Net operating Income $ 62,700 7.68 605 400 154 23.61 Exercise 6-16 Part 3 3. Assume thot sales in Chicago increase by $55,000 next year and that sales in Minneapolis remain unchanged. Assume no change In fixed costs a. Prepare a new segmented income statement for the company. (Round your percentage answers to 1 decimal place ..0.1234 should be entered as 12.3).) Exercise 6-16 Part 3 3. Assume that sales in Chicago increase by $55,000 next year and that sales in Minneapolis remain unchanged. Assume no change In fixed costs. a. Prepare a new segmented income statement for the company. (Round your percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Segments Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Net operating income Total Company Chicago Amount % Amount $ 880,000 100.0 $ 220.0001 462,000 66,000 418,000 100.0 154,000 213,400 24.0 44,616 204,600 76.0 $ 109,384 132,000 15.0 $ 72,600 61.0 Minneapolis % Amount % 100.01 s 660.000 100.0 30.0 396,000 50.0 70.0 264.000 40.0 52.0 99,000 15.0 18.0 S 165,000 25.0