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Required information [The following information applies to the questions displayed below.j Raner, Harris & Chan is a consulting firm that specializes in information systems for
Required information [The following information applies to the questions displayed below.j 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 750,000 405,000 345,000 168,000 Chicago Minneapolis $ 100.0% 54.0% 46.0% 22.4% $150,000 45,000 105,000 78,000 100% 30% Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income $600,000 360,000 240,000 90,000 $150,000 100% 60% 40% 15% 25% sw 70% 52% 18% , 177,000 23.6% $ 27,000 120,000 16.0% 7.6% 57,000 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 answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Segments Total Company Chicago Minneapolis Amount Amount Amount 0.0 0.0 0.0 0.0 S 0.0 0.0 0.0
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