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(The following information applies to the questions displayed below] Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and
(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 $ 525,000 100.0% 283,500 54.08 241, 500 46.08 117,600 22.45 123, 900 23.6% 84,000 16.08 $ 39,900 7.53 Office Chicago Minneapolis $ 105,000 100% $ 420,000 100% 31,500 303 252,000 608 73,500 703 168,000 40% 54,600 523 63,000 15% $ 18,900 189 $ 105,000 25+ 13 3. Assume that sales in Chicago increase by $35,000 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).) Segments Total Company Chicago Minneapolis Amount % Amount % Amount % ces
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