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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 $ 862,500 100.0% 465,750 54.0% 396,750 46.0% 193,200 22.4% 203,550 23.6% 138,000 16.0% $ 65,550 7.6% Office Chicago Minneapolis $ 172,500 100% $ 690,000 100% 51,750 30% 414,000 60% 120,750 70% 276,000 40% 89,700 52% 103,500 15% $ 31,050 18% $ 172,500 25% 3. Assume that sales in Chicago increase by $57,500 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 percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Total Company Amount % Chicago Amount Segments Minneapolis Amount % % 0 0.0 0 0.0 0 0.0 0 0.0 S 0 0.0 S 0 0.0 S 0 0.0 Administrative expenses Advertising Beginning merchandise inventory Commissions Common fixed expenses not traceable to segments Cost of aoods sold Depreciation Direct labor Direct materials Ending merchandise inventory Fixed manufacturing overhead Indirect labor Indirect materials Purchases Sales Traceable fixed expenses Variable expenses Variable manufacturing overhead
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