Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics The firm has two officesone 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 companys most recent year is given Total Company Office Chicago Minneapolis Sales $ 531,000 100 00 $ 177,000 100 00 $ 354,000 100 00 Variable expenses 265,500 50 00 53,100 30 00 212,400 60 00 Contribution margin 265,500 50 00 123,900 70 00 141,600 40 00 Traceable fixed expenses 148,680 28 00 92,040 52 00 56,640 16 00 Office segment margin 116,820 22 00 $ 31,860 18 00 $ 84,960 24 00 Common fixed expenses not traceable to offices 74,340 14 00 Net operating income $ 42,480 8 00 3 Assume that sales in Chicago increase by $59,000 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 )) Hrepare a new segmented income statement tor the company (Round your intermediate calculations and percentage answer decimal place (i e 0 1234 should be entered as 12 3 and other answers to the nearest whole dollar ))

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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 officesone in Chicago

Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone 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 companys most recent year is given:

	Total Company		Office
	Total Company		Chicago		Minneapolis
Sales	$ 531,000	100.00%	$ 177,000	100.00%	$ 354,000	100.00%
Variable expenses	265,500	50.00%	53,100	30.00%	212,400	60.00%
Contribution margin	265,500	50.00%	123,900	70.00%	141,600	40.00%
Traceable fixed expenses	148,680	28.00%	92,040	52.00%	56,640	16.00%
Office segment margin	116,820	22.00%	$ 31,860	18.00%	$ 84,960	24.00%
Common fixed expenses not traceable to offices	74,340	14.00%
Net operating income	$ 42,480	8.00%

3. Assume that sales in Chicago increase by $59,000 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.))

Hrepare a new segmented income statement tor the company. (Round your intermediate calculations and percentage answer decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.))