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! Required information [The following information applies to the questions displayed below.] Raner, Harris & Chan is a consulting firm that specializes in information systems
! Required information [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 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 $ 468,000 100% 237,000 50% 231,000 50% 128,400 28% 102,600 22% 66,000 14% 36,600 8% Office Chicago Minneapolis $ 159,000 100% $ 309,000 1% 51,000 30% 185,400 60% 108,000 70% 123,600 40% 79,200 52% 49,440 16% $ 28,800 18% $ 74,160 24% 3. Assume that sales in Chicago increase by $53,000 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 (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.))
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