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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 for
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 $1,012,500 100.0% 546,750 54.0% 465,750 46.0% 226,800 22.4% 238,950 23.6% 162,000 16.0% $ 76,950 7.6% Office Chicago Minneapolis $ 202,500 100% $ 810,000 100% 60,750 30% 486,000 60% 141,750 70% 324,000 40% 105,300 52% 121,500 15% $36,450 18% $ 202,500 25% 3. Assume that sales in Chicago increase by $67,500 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 percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Total Company Amount % $ 500,000 Chicago Amount Segments Minneapolis Amount % % Sales 500,000 0.0 0 0.0 0 0.0 Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Net operating income 500,000 0.0 S 0 0.0 S 0 0.0 $ 500,000 0.0
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