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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 Eixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 450,000 1000 225,000 500 225,000 508 126,000 289 99,000 229 63,000 148 $36,000 88 office Chicago Minneapolis $ 150,000 1005 $ 300,000 1004 45,000 305 180,000 608 105,000 708 120,000 408 78,000 528 48,000 16 $ 27,000 185 $ 72,000 245 3. Assume that sales in Chicago increase by $50,000 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 percentage anders to 1 decimal place (1.0.0.1234 should be entered as 12.3).) Segments Total Company Chicago Minneapolis . Ann E
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