Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

just confused what step im missing/ doing wrong. Please explain, thanks! Required information [The following information applies to the questions displayed below.) Raner, Harris &

image text in transcribed

image text in transcribed

just confused what step im missing/ doing wrong. Please explain, thanks!

Required information [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: 608 Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Office Chicago Minneapolis $ 160,000 1003 $ 310,000 100% 48,000 30% 186,000 112,000 70% 124,000 83,200 52% 49,600 16% $ 28,800 18% $ 74,400 243 403 Total Company $ 470,000 100% 234,000 50% 236,000 50% 132,800 28% 103,200 22% 65,800 14% $ 37,400 8 % 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 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.)) in fixed costs. 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.)) X Answer is complete but not entirely correct. Segments Total Company Chicago Minneapolis Amount % Amount % Amount % Sales $ 525,000 100.0 $ 215,000 100.0 $ 310,000 100.0 234,000 Variable expenses 44.6 48,000 X 22.3 x 186,000 60.0 291,000 55.4 77.7 124,000 40.0 Contribution margin Traceable fixed expenses 167,000 83,200 > 132,800 25.3 38.7 16.0 49,600 $ 74,400 30.1 158,200 $ 83,800 39.0 24.0 Office segment margin 65,800 12.5 Common fixed expenses not traceable to segments Net operating income 92,400 17.6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Undergraduates

Authors: James Wallace, Scott Hobson, Theodore Christensen

2nd Edition

1618533096, 9781618533098

More Books

Students also viewed these Accounting questions

Question

What two project dimensions are components of project performance?

Answered: 1 week ago