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Required information [The following information applies to the questions displayed below) Raner, Harris and Chan is a consulting firm that specializes in information systems for
Required information [The following information applies to the questions displayed below) Raner, Harris and 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 Sales $ 463,500 100N $ 154,500 1000 $ 109,000 1000 Variable expenses 231,750505 46,350 300 185,400 CON Contribution margin 231,750 500 108, 150 700 123,600 Traceable fixed expenses 129,280 285 80,340 520 49,440 Office segment margin 101,970 225 $ 27,810 180 $ 74,160 Connon fixed expenses not traceable to offices 64,890 Net operating income $ 37,080 85 400 240 3. Assume that sales in Chicago increase by $51,500 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 doltar.) Segments Minneapolis Total Company Amount Chicago Amount Amount
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