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only need variable expenses Raner. Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has
only need variable expenses
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 Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 489,000 100% 251,000 50% 238,000 SOX 131,200 28% 106,800 22% 69,500 14% $ 37,300 8% office Chicago Minneapolis $ 169,500 100% $319,500 1X 58,000 30% 191,700 60% 111,500 70% 127,800 40% 80,600 52% 51, 120 16% $ 30,900 18% $ 76,680 24% 3. Assume that sales in Chicago increase by $56,500 next year and that sales in Minneapolis remain unchanged. Assume no change In fixed costs a. Prepare a new segmented income statement for the company (Round your intermediate calculations and percentage answers to 1 decimal place lie. 0.1234 should be entered os 12.3 and other answers to the nearest whole dollar.)) Answer is not complete. Sales Total Company Chicago Amount Amount Os 545,500 100.0 226,000 Variable expenses Contribution margin Traceted expres Oi gemarin Como Se prestracelet segments Segments Minneapolis % Amount % 1000$ 319.500 1000 191.700 50.0 1000 127.800 400 35.7 51.120 160 5 76.680 240 000 545 500 131.120 415.780 6500 1000 241 259 12.7 226,000 30600 $145.400 64,3 Step by Step Solution
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