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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 systems
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 Sales $508,500 Total Company 100.00% Chicago $169,500 100.00% Minneapolis $339,000 100.00% Variable expenses 254,250 50.00% 50,850) 30.00% 203,400 60.00% Contribution margin- 254,250 50.00% 118,650 70.00% 135,600 40.00% Traceable fixed expenses. 142,380 28.00% 88,140 52.00% 54,240 16.00% office segment margin 111,870 22.00% $ 30,510 18.00% $ 81,360 24.00% Common fixed expenses not traceable to offices 71,190 14.00% Net operating income $ 40,680 8.00% 3. Assume that sales in Chicago increase by $56,500 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 (l.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Segments 3. Assume that sales in Chicago increase by $56,500 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 (l.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 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 $ 0 0.0
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