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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
! 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: Office Total Company Chicago Minneapolis Sales $ 540,000 Variable expenses 270,000 100.00% 50.00% $ 180,000 54,000 100.00% 30.00% $ 360,000 216,000 100.00% 60.00% Contribution margin 270,000 50.00% 126,000 70.00% 144,000 40.00% Traceable fixed expenses 151,200 28.00% 93,600 52.00% 57,600 16.00% Office segment margin 118,800 22.00% $ 32,400 18.00% $ 86,400 24.00% Common fixed expenses not traceable to offices 75,600 Net operating income $ 43,200 14.00% 8.00% 3. Assume that sales in Chicago Increase by $60,000 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 (l.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Total Company Amount Segments Chicago Minneapolis % Amount % Amount %
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