Required information 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 $ 499,500 100.00% $ 166,500 100.00% $ 333,000 100.00%

Variable expenses 249,750 50.00% 49,950 30.00% 199,800 60.00%

Contribution margin 249,750 50.00% 116,550 70.00% 133,200 40.00%

Traceable fixed expenses 139,860 28.00% 86,580 52.00% 53,280 16.00%

Office segment margin 109,890 22.00% $ 29,970 18.00% $ 79,920 24.00%

Common fixed expenses not traceable to offices 69,930 14.00%

Net operating income $ 39,960 8.00%

3. Assume that sales in Chicago increase by $55,500 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.))