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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 $ 456,000 100% 229,000 50% 227,000 50% 126,800 28% 100,200 22% 64,000 14% $ 36,200 8% Office Chicago Minneapolis $ 153,000 100% 303,000 1% 47,000 30% 181,800 60% 106,000 70% 121,200 40% 78,400 52% 48,480 16% $ 27,600 18% 72,720 24% 3. Assume that sales in Chicago increase by $51,000 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.) Segments Chicago Minneapolis Total Company Amount % Amount % Amount % Sales 0 0.0 0 0.0 0 0.0 Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Net operating income 0 0.0 $ 0 0.01$ 0 0.0 $ 0 0.0
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