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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 Sales $ 454,500 100% $ 151,500 100% Minneapolis $ 303,000 100% Variable expenses 227, 250 50% 45, 450 30% 181, 800 60% Contribution margin 227, 250 50% 106,050 70% 121, 200 40% Traceable fixed expenses 127, 260 28% 78, 780 52% 48, 480 16% Office segment margin Common fixed expenses not traceable to offices Net operating income 99, 990 63,630 22% 14% $ 27,270 18% $ 72, 720 24% $ 36, 360 8% 3. Assume that sales in Chicago increase by $50,500 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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