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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 $ 450,000 100.0% 243,000 54.0% 207,000 46.0% 100,800 22.4% 106,200 23.6% 72,000 16.0% $ 34,200 7.6% office Chicago Minneapolis 90,000 100% $ 360,000 100% 27,000 30% 216,000 60% 63,000 70% 144,000 40% 46,800 52% 54,000 15% 16,200 18% $ 90,000 25% $ Exercise 7-16 Part 3 3. Assume that sales in Chicago increase by $30,000 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).) Total Company Amount % Chicago Amount Segments Minneapolis Amount % % 0 0. 0 0 0 0. 0 0.0 0 0 .0 $ 0 0.0 $ 0 0.0 $ 0 0.0
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