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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 396,000 64,0004 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income $825,000 100.0% $165,000 49,500 46.08115,500 85,800 100% $660,000 100% 60% 445,500 54.0% 49,500 708 379,500 184,80022.43- 30% 523 18% $165,000 99,000155- 194,700 23.6% $ 29,700 25% 132,000 6.0 62,700 7.6% 3. Assume that sales in Chicago increase by $55,000 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. 01234 should be entered as 12.3).)
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