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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
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: Office Sales Variable expenses Contribution margin Office segment margin Traceable fixed expenses Common fixed expenses not traceable to offices. Net operating income Total Company $ 499,500 100% 249,750 50% 249,750 50% 139,860 28% 109,890 22% 69,930 14% Chicago $ 166,500 100% 49,950 30% Minneapolis $ 333,000 199,800 100% 60% 116,550 70% 86,580 52% 133,200 40% 53,280 16% $ 29,970 18% $ 79,920 24% $ 39,960 8% 3. Assume that sales in Chicago increase by $55,500 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 (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Segments Total Company Chicago Minneapolis Amount % Amount % Amount %
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