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Required information Skip to question [The following information applies to the questions displayed below.] Raner, Harris & Chan is a consulting firm that specializes in

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[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 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 $ 459,000 100% $ 154,500 100% $ 304,500 100%
Variable expenses 229,500 50% 46,350 30% 182,700 60%
Contribution margin 229,500 50% 108,150 70% 121,800 40%
Traceable fixed expenses 128,520 28% 80,340 52% 48,720 16%
Office segment margin 100,980 22% $ 27,810 18% $ 73,080 24%
Common fixed expenses not traceable to offices 64,260 14%
Net operating income $ 36,720 8%

3. Assume that sales in Chicago increase by $51,500 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 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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