Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information SB Exercise 6-16 through Exercise 6-17 (Algo) [The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting

image text in transcribed
image text in transcribed
image text in transcribed
Required information SB Exercise 6-16 through Exercise 6-17 (Algo) [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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 474,000 100% 237,000 50% 237,000 50x 132,720 28% 104,280 22% 66, 360 14% $ 37,920 8% Office Chicago Minneapolis $ 162,000 100% $ 312,000 100% 48,609 30% 187,200 60% 113,400 70% 124,800 84,240 52% 49,92 16% $ 29,160 18% $ 74,880 24% Exercise 6-16 Part 3 (Algo) Working with a Segmented Income Statement; Break-Even Analysis (L06-4, LO6-5] 3. Assume that sales in Chicago increase by $54,000 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.)) Segments Chicago Total Company Amount % Minneapolis Amount Amount % 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.)) Segments Chicago Minneapolis Total Company Amount % Amount % Amount % $ 216,000 0 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Net operating income 0.0 216.000 84 240 0.0 $ 131,760 100.00 $ 312.000 30.0 187,200 700 124.800 49.920 70.05 74.880 1000 60.0 40.0 16.0 240 0 $ 0.0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Theodore E. Christensen, David M. Cottrell, Cassy Budd

13th International Edition

1265042616, 9781265042615

More Books

Students also viewed these Accounting questions