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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 Variable expenses Contribution margin office segment margin Total Company $450,000 100% 225,000 50% 225,000 50% Chicago Minneapolis 45,000 105,000 70% $ 150,000 100% $ 300,000 100% 30% 180,000 60% 120,000 406 Traceable fixed expenses Common fixed expenses not traceable to offices Net operating income 126,000 286 99,000 228 63,000 149 $ 36,000 78,000 526 $27,000 10% 48,000 166 $ 72,000 248 3. Assume that sales in Chicago increase by $50,000 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 (i.e. 0.1234 should be entered as 12.3).) 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 (i.e. 0.1234 should be entered as 12.3).) Segments Total Company Amount Chicago Minneapolis % Amount % Amount
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