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 below:

Office

Total Company

Chicago

Minneapolis

Sales

$

525,000

100.0

%

$

105,000

100

%

$

420,000

100

%

Variable expenses

283,500

54.0

%

31,500

30

%

252,000

60

%

Contribution margin

241,500

46.0

%

73,500

70

%

168,000

40

%

Traceable fixed expenses

117,600

22.4

%

54,600

52

%

63,000

15

%

Office segment margin

123,900

23.6

%

$

18,900

18

%

$

105,000

25

%

Common fixed expenses not traceable to offices

84,000

16.0

%

Net operating income

$

39,900

7.6

%

3.	Refer to the original data. Assume that sales in Chicago increase by $35,000 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 .1234 should be entered as 12.3))

			Segments
	Total Company		Chicago		Minneapolis
	Amount	%	Amount	%	Amount	%