Raner, Harris and 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:

Total Company Office

Chicago Minneapolis

Sales $ $450,000100\%$ $ $150,000100\%$ $ $300,000100\%$

Variable expenses $225,00050\%45,00030\%180,00060\%$

Contribution margin $225,00050\%105,00070\%120,00040\%$

Traceable fixed expenses $126,00028\%78,00052\%48,00016\%$

Office segment margin $99,00022\%$ $ $27,00018\%$ $ $72,00024\%$

Common fixed expenses not traceable to offices $63,00014\%$

Net operating income $ $36,0008\%$

$3.$ Assume that sales in Chicago increase by $$50,000$ 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.