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! Required information (The following information applies to the questions displayed below.) Raner, Harris and Chan is a consulting firm that specializes in information systems
! Required information (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 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 $ 526,500 100.00% 263, 250 50.008 263, 250 50.00 147, 420 28.008 115,830 22.00% Office Chicago Minneapolis $ 175,500 100.00% $ 351,000 100.00% 52,650 30.00% 210,600 60.00% 122,850 70.008 140,400 40.00% 91,260 52.00% 56,160 16.00% $ 31,590 18.00% $ 84,240 24.00% 73, 710 $ 42, 120 14.00% 8.008 3. Assume that sales in Chicago increase by $58,500 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.)) Segments Total Company Chicago Minneapolis Amount % Amount % Amount %
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