! Required information Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis (LO6-4, LO6-5] (The following information applies to the questions displayed below. 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 Sales Variable expenses Contribution margin Traceable fixed expenses Total Company $ 637,500 100.0% 344,250 54.08 293, 250 46.0% 142,800 22.48 Chicago $ 127,500 100% 38,250 30% 89, 250 70% 66.300 52% $ 22,950 18% Minneapolis $ 510,000 100% 306,000 60% 204,000 40% 76,500 15% $ 127,500 25% 150,450 23.6% Office segment margin Common fixed expenses not traceable to offices Net operating income 102,000 $ 48,450 16.08 7.6% Exercise 6-16 Part 3 3. Assume that sales in Chicago increase by $42,500 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 should be entered as 12.3).) Segments Chicago Minneapolis Total Company Amount % Amount % Amount % Sales $ 1,190,000 100.0 $ 680,000 100.0 $ 510,000 100.0 100.0 100.0 510,000 100.0 Variable manufacturing overhead Contribution margin Traceable fixed expenses Office segment margin 1,190,000 142,800 1,047,200 680,000 66,300 76,500 100.0 $ 613,700 100.0 $ 433,500 100.0 Common fixed expenses not traceable to segments Net operating income $ 1,047,200 100.0