Required information SB Exercise 6 16 through Exercise 6 17 (Algo) Skip to question The following information applies to the questions displayed below Raner, Harris and 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 Total Company Office Chicago Minneapolis Sales $ 513,000 100 00 $ 171,000 100 00 $ 342,000 100 00 Variable expenses 256,500 50 00 51,300 30 00 205,200 60 00 Contribution margin 256,500 50 00 119,700 70 00 136,800 40 00 Traceable fixed expenses 143,640 28 00 88,920 52 00 54,720 16 00 Office segment margin 112,860 22 00 $ 30,780 18 00 $ 82,080 24 00 Common fixed expenses not traceable to offices 71,820 14 00 Net operating income $ 41,040 8 00 Exercise 6 16 Part 3 (Algo) Working with a Segmented Income Statement Break Even Analysis LO6 4, LO6 5 3 Assume that sales in Chicago increase by $57,000 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 (i e 0 1234 should be entered as 12 3 and other answers to the nearest whole dollar ))

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Required information SB Exercise 6-16 through Exercise 6-17 (Algo) Skip to question [The following information applies to the questions displayed below.] Raner, Harris and Chan

Required information

SB Exercise 6-16 through Exercise 6-17 (Algo)

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[The following information applies to the questions displayed below.]

Raner, Harris and 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:

	Total Company		Office
	Total Company		Chicago		Minneapolis
Sales	$ 513,000	100.00%	$ 171,000	100.00%	$ 342,000	100.00%
Variable expenses	256,500	50.00%	51,300	30.00%	205,200	60.00%
Contribution margin	256,500	50.00%	119,700	70.00%	136,800	40.00%
Traceable fixed expenses	143,640	28.00%	88,920	52.00%	54,720	16.00%
Office segment margin	112,860	22.00%	$ 30,780	18.00%	$ 82,080	24.00%
Common fixed expenses not traceable to offices	71,820	14.00%
Net operating income	$ 41,040	8.00%

Exercise 6-16 Part 3 (Algo) Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5]

3. Assume that sales in Chicago increase by $57,000 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 (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.))