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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
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: Office Sales Variable expenses Contribution margin Total Company $562,500 100.0% Chicago Minneapolis $ 112,500 100% $ 450,000 100% 303,750 54.0% 258,750 46.0% 33,750 78,750 30% 270,000 60% 70% Traceable fixed expenses 126,000 22.4% 58,500 52% 180,000 67,500 40% 15% Office segment margin 132,750 23.6% $ 20,250 18% $ 112,500 25% Common fixed expenses not traceable to offices, Net operating income 90,000 16.0% $ 42,750 7.6% 3. Assume that sales in Chicago increase by $37,500 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).) Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Net operating income Answer is not complete. 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
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