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Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices one in

Raner, Harris & 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:
Office
Total Company Chicago Minneapolis
Sales $ 1,050,000100.0% $ 210,000100% $ 840,000100%
Variable expenses 567,00054.0%63,00030%504,00060%
Contribution margin 483,00046.0%147,00070%336,00040%
Traceable fixed expenses 235,20022.4%109,20052%126,00015%
Office segment margin 247,80023.6% $ 37,80018% $ 210,00025%
Common fixed expenses not traceable to offices 168,00016.0%
Net operating income $ 79,8007.6%
3. Assume that sales in Chicago increase by $70,000 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 percentage answers to 1 decimal place (i.e.0.1234 should be entered as 12.3).)

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