Question
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: Sales Variable expenses Contribution margin. Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Office Total Company Chicago $ 490,500 100% 245,250 50% 245,250 50% 137,340 28% 107,910 22% 68,670 14% $ 163,500 100% 49,050 30% Minneapolis $ 327,000 100% 114,450 70% 85,020 52% 196,200 60% 130,800 40% 52,320 16% $ 29,430 18% $ 78,480 24% $ 39,240 8% 3. Assume that sales in Chicago increase by $54,500 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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