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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

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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 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 incone Total Company $ 499,500 100.00% 249,250 50.00% 249,750 50.0ex 139,860 28.00 109,890 22.00% Office Chicago Hinneapolis $ 166,500 100.00% $ 333,000 100.00% 49,950 30.00% 199,800 60.00 116,550 70.00% 133,200 40.00 86,580 52.00 53230 16.00 $ 29,970 18.00 $ 79,920 24.00% 69,930 $ 39,960 14.00% 8.00% 3. Assume that sales in Chicago increase by $55,500 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 $55,500 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 os 12.3 and other answers to the nearest whole dollar)) Total Company Chicago Amount Amount 1000 Segments Minneapolis Amount 100.07 $ 333,000 300 199 800 700 133 200 53 20 310 $ 79,920 600 0 00 0 400 Vanable expenses Contribution margin Traceable foxed expenses Oflice segment margin Common foxed expenses not traceable to segments Not operating incomo 60 240 00 $ 0 139,800 (139,860) 69,930 $ (209.790) 00

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