Return to question 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 $ 495,000 100% 255,000 52% 240,000 48% 132,000 278 108,000 228 70,500 14% $ 37,500 8% Office Chicago Minneapolis $ 172,500 100% $ 322,500 100% 60,000 35% 195,000 60% 112,500 65% 127,500 40% 81,000 47% 78,000 24% $ 31,500 18% $ 49,500 15% 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $82,500 per year? Assume no change in cost behavior patterns. > Answer is complete but not entirely correct. Net operating income increase $ 33,000 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 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 dollar.)) Segments Total Company Chicago Minneapolis Amount % Amount % Amount % 100.0 100.0 100.0 60.0 0 100.0 0 100.0 0 40.0 0 100.0 $ 0 100.0 $ 0 40.0 $ 0 100.0 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 $ 495,000 100% 255,000 52% 240,000 48% 132,000 278 108,000 22 70,500 14% $ 37,500 8% Office Chicago Minneapolis $ 172,500 1008 $ 322,500 100% 60,000 358 195,000 60% 112,500 65% 127,500 40% 81,000 478 78,000 24% $ 31,500 18% 49,500 15% 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 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 dollar.)) Segments
