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Required Information The following information applies to the questions displayed below.) Rener, Harris & Chon is a consulting firm that specializes in information systems for
Required Information The following information applies to the questions displayed below.) Rener, Harris & Chon 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 formet segmented income statement for the company's most recent year is given: Total Company $975, 800 100.0% 526,500 54.2% 448,500 46.6% 218,400 22.4% 230, 100 23.6% Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Office Chicago Minneapolis $195, eee 100% $780,000 100% 58, see 30% 468, eae 60% 136,500 70% 312,000 40% 181,400 117,000 15% $ 35, 100 18% $195, eee 25% 52% 156,800 $ 74,100 16.0% 7.6% 3. Assume that sales in Chicago increase by $65.000 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. 2. Prepare a new segmented income statement for the company. (Round your percentage answers to 1 decimal place (1.e. 0.1234 should be entered as 12.3).) Segments Minneapolis Total Company Amount % Chicago Amount % Amount %
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