Working with a Segmented Income Statement; Break-Even Analysis

Total Company Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not Net operating income Exercise 7-16 Part 3 Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis [1.074, 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 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 company's most recent year is given: Office lee. 75e, eee ses,25e 459, eee 46.0% 431,25e 131,25e 3ee, eee 22 2 le, eee 112, see 23.6% 187 , see 221,25e 16.0% 15e, eee $ 937, see Chicago $ 187, see 56,25e 97 , see le% Minneapolis -1 le% traceable to offices 3. Assume that sales in Chicago increase by $62,500 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 (i.e. 0.1234 should be entered as 12.3).) Total Company Amount Segments Chicago Amount Minneapolis Amount 0.0 0.0 0.0 0.0 0.0 0.0 0.0