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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 for
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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 492,000 100% 253,000 50% 239,000 50% 131,600 28% 107,400 22% 70,000 14% $ 37,400 Office Chicago Minneapolis $ 171,000 100% $ 321,000 1% 59,000 30% 192,600 60% 112,000 70% 128,400 40% 80,800 52% 51,360 16% $ 31,200 18% $ 77,040 24% 3. Assume that sales in Chicago Increase by $57,000 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 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.)) Chicago Total Company Amount % Segments Minneapolis Amount % Amount % 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 FA 0 0.0
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