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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
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 Total Company Sales $459,000 100% Chicago, $153,000 100% Minneapolis $ 306,000 100% Variable expenses 229, 500 50% 45.900 30% 183, 600 60% Contribution margin 229, 500 50% 107.100 70% 122, 400 40% Traceable fixed expenses 128,520 28% Office regnent margin 100.980 22 79, 560 $ 27,540 52% 48. 960 16x 18% $ 73,440 24% Connon fixed expenses not traceable to offices 64.260 14% Net operating income $ 36.720 8% Assume that sales in Chicago increase by $51,000 next year and that sales in Minneapolis remain unchanged. Assume no change in ixed 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.)) Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Segments Total Company Chicago Minneapolis Amount % Amount % Amount 36 0 00 0 0.0 0 0.0 0 00 $ 0 0.0 $ 0 0.0 Common fixed expenses not traceable to segments Net operating income S 0 0.0
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