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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 Chicago
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 segnent margin Common fixed expenses not traceable to offices Net operating income Total Company $ 531,000 100.ex 265,5ee 50.00% 265,500 5e.ee 148,680 28.00% 116,820 22.00% Office Chicago Minneapolis $ 177,000 100.00% $ 354,000 1ee.eex 53,100 3e.eex 212,400 60.00% 123,900 70.eex 141,600 40.ee 92,040 52.00% 56,640 16.ee $ 31,860 18.ex $ 84,960 24.ee 74,340 $ 42,480 14.eex 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 (1.0.0.1234 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 00 0 00 $ 0 0.0 $ 0 0.0 $ 0 0.0
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