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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 Sales $ 526,500 100% Variable expenses Contribution margin Traceable fixed expenses office segnent margin Common fixed expenses not traceable to offices. Net operating income) 263,250 50% 263,250 50% 147,420 281 115,830 228 73,710 14 $ 175,500 52,650 30% 122,850 70 91,260 528 100% Minneapolis $ 351,000 100% 210,600 608 140,400 40% 56,160 164 $ 31,590 189 $ 84,240 249 $ 42,120 81 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.)) Segments Total Company Chicago Minneapolis Amount % Amount % Amount %
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