Saved Help Save & E Chec 13 bed Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis (L07-4, L07-5) [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 Sales 5 712,500 100.00 5 142,500 1001 $570,000 100 Variable expenses 384,750 54.00 42,250 342,000 Contribution margin 327.750 46.00 99,750 228.000 40 Traceable fixed expenses 159,600 22.45 74,100 526 85 500 155 Office segment margin 168,150 23.64 $ 25,650 18 $ 142,500 255 Common fixed expenses not traceable to offices 114,000 16.es Net operating income $ 54,150 7.69 DOK 305 705 603 sk int Exercise 7-16 Part 3 Wences 3. Assume that sales in Chicago increase by $47.500 next year and that sales in Minneapolis remoln 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 (.e. 0.1234 should be entered as 12.3).) Segmente Total Company Chicago Alinneapolis A Am Am Help Save & E Check Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income 159,600 168,150 114,000 $ 54,150 22.45 23.61 16.es 7.65 74,100 $ 25,650 525 18% 85,500 $ 142,500 15 255 3 Exercise 7-16 Part 3 3. Assume that sales in Chicago increase by $47,500 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 (le. 01234 should be entered as 12.3).) Total Company Amount % Chicago Amount Segments Minneapolis Amount 0 00 0 00 0 00 ce Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Net operating income 0 0.05 0 0,0 $ 0 0.0 $ 0 00 8m of 6