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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

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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 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 Chicago Minneapolis $1,087,500 100.0% $217,500 65,250 152,250 113,100 100% 30% 70% 52% $870,000 522,000 348,000 130,500 100% 60% 40% 15% Sales Variable expenses 587,250 54.0% 500,250 243,600 22.4% Contribution marqin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income 46.0% 256,650 23.6% $39,150 18% $217,500 25% 174,000 82,650 16.0% 7.6% 3. Assume that sales in Chicago increase by $72,500 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

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