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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 Total Company Chicago Minneapolis Sales $ 526,500 Variable expenses 263,250 100.00% 50.00% $ 175,500 100.00% 52,650 30.00% $ 351,000 210,600 100.00% 60.00% Contribution margin 263,250 50.00% Traceable fixed expenses 147,420 28.00% 122,850 91,260 70.00% 140,400 40.00% 52.00% 56,160 16.00% Office segment margin 115,830. 22.00% $ 31,590 18.00% $ 84,240 24.00% Common fixed expenses not traceable to offices 73,710 14.00% Net operating income $ 42,120 8.00% 3. Assume that sales in Chicago increase by $58,500 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 (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.))
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