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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: office Total Company Chicago Minneapolis Sales $ 490, 500 100.000 $ 163,500 100.000 $ 327,000 100.000 Variable expenses 245, 250 50.000 49,050 30.000 196,200 60.000 Contribution margin 245,250 50.000 114,450 70.000 130,800 40.000 Traceable fixed expenses 137, 340 28.000 85,020 52.00 52,320 16.00 office segment margin 107,910 22.008 $ 29,430 18.008 $ 78,480 24.000 Common fixed expenses not traceable to offices 68,670 14.000 Net operating income $ 39,240 8.008 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.) 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 (ie. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar)) Segments Total Company Minneapolis Chicago Amount Amount % Amount % es
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