anewconn McG ation g Wit Chapter 7: Homework Help Save & Exit Submit Check my work 3 Required information Exercise 7-16 Working with a Segmented Income Statement: Break-Even Analysis (LOT4. LO7-5) The following information applies to the questions displayed below] Part 3 of 3 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 1.66 points Total Conpany ChicagolTOTNinneapolis $937,500 100.0% s187,5001008 $750,000 1001 1130% 1.450,000 601 403 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income 506/250 54.o 431,250 46.0% | . 56,250 131,250 eBook Print References 70 523 300,000 112,500 210,000 22.4% m31200 97,500 221.250 11 123.61 is 33,750 18% s187,500 25 150,000 16.01 $ 71.250.6 Exercise 7-16 Part 3 3. Assume that sales in Chicago increase by $62.500 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 G.e. 01234 should be entered as 12.3).) KPrev les 11|Next> Mc Graw