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7 Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices-one in
7 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: Part 3 of 3 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income 2. points Office Chicago Minneapolis $ 178,500 100% $ 328,500 1% 64,000 30% 197,100 60% 114,500 70% 131,400 40% 81,800 52% 52,560 16% 32,700 18% 78,840 24% Total Company $ 507,000 100% 263,000 50% 244,000 50% 133,600 28% 110,400 22% 72,500 14% $ 37,900 8% eBook Print Recent 3. Assume that sales in Chicago increase by $59,500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. References a. Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Segments Chicago Minneapolis Total Company Amount % Amount % Amount %
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