Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 $ 540,000 100.000 270,000 50.000 270,000 50.000 151,200 28.000 118,800 22.00 office Chicago Minneapolis $ 180,000 100.000 $ 360,000 100.000 54,000 30.000 216,000 60.004 126,000 70.00 144,000 40.000 93,600 52.008 57,600 16.00 $ 32,400 18.000 $ 86,400 14.00% 75,600 $ 43,200 14.000 8.00 3. Assume that sales in Chicago Increase by $60,000 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)) 3. Assume that sales in Chicago increase by $60,000 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 (l.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Total Company Chicago Amount Segments Minneapolis Amount + % Amount % % 0 0 0 0.0 0.0 0.0 0 0 0.0 0 0.00 $ 0.00 $ $ 0 0.0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Lost Continent The BBCs Europe Editor On Europes Darkest Hour Since World War Two

Authors: Gavin Hewitt

1st Edition

1444764829, 9781444764826

More Books

Students also viewed these Accounting questions

Question

=+3. Who are the brand's competitors?

Answered: 1 week ago

Question

11.7 Discuss competency-based pay.

Answered: 1 week ago