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Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone 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 companys most recent year is given:

	Total Company		Office
			Chicago		Minneapolis
Sales	$ 450,000	100%	$ 150,000	100%	$ 300,000	100%
Variable expenses	225,000	50%	45,000	30%	180,000	60%
Contribution margin	225,000	50%	105,000	70%	120,000	40%
Traceable fixed expenses	126,000	28%	78,000	52%	48,000	16%
Office segment margin	99,000	22%	$ 27,000	18%	$ 72,000	24%
Common fixed expenses not traceable to offices	63,000	14%
Net operating income	$ 36,000	8%

3. Assume that sales in Chicago increase by $50,000 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).)