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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

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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 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 40% Total Company $ 825,000 100.0% 445,500 54.0% 379,500 46.0% 184,800 22.48 194,700 23.6% 132,000 16.0% $ 62,700 7.68 Office Chicago Minneapolis $ 165,000 100% $ 660,000 100% 49,500 396,000 60% 115,500 264,000 85,800 99,000 $ 29,700 $ 165,000 3. Assume that sales in Chicago increase by $55,000 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 $ 220,000 Segments Minneapolis Amount 100.0 $ 660,000 30.0 396,000 70.0 264,000 99,000 70.0 $ 165,000 0.0 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Net operating income 220,000 100.0 60.0 40.0 15.0 25.0 0.0 $ 220,000 0.0

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