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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

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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 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 $ 975,000 100.00 526,500 54.00 448,500 46.00 218,400 22.48 230,100 23.69 156,000 16.08 $ 74,100 7.68 Office Chicago Minneapolis $ 195,000 1000 $ 780,000 1000 58,500 308 468,000 608 136,500 700 312,000 408 101,400 520 117,000 150 $ 35,100 180 $ 195,000 258 3. Assume that sales in Chicago increase by $65,000 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 percentage answers to 1 decimal place (.e. 0.1234 should be entered as 12.3).) Segments Chicago Total Company Amount % Minneapolis Amount % Amount %

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