Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. raner, harris & chan is a consulting firm that

Raner, Harris & Chan is a consulting firm that specializes in information systems for medical...

60.1K

Verified Solution

Question

Accounting

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 companys most recent year is given:

Office
Total Company Chicago Minneapolis
Sales $ 487,500 100.0 % $ 97,500 100 % $ 390,000 100 %
Variable expenses 263,250 54.0 % 29,250 30 % 234,000 60 %
Contribution margin 224,250 46.0 % 68,250 70 % 156,000 40 %
Traceable fixed expenses 109,200 22.4 % 50,700 52 % 58,500 15 %
Office segment margin 115,050 23.6 % $ 17,550 18 % $ 97,500 25 %
Common fixed expenses not traceable to offices 78,000 16.0 %
Net operating income $ 37,050 7.6 %

3. Assume that sales in Chicago increase by $32,500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Consider a 9 × 9 Sudoku, where each number appears exactly once in each row and exactly...

Physics
1.2K views

Q 2 The following question consists of two statements Assertion and Reason 1 A Both...

Physics
1.2K views

1 Figures a and b show the electric lines of force of a positive and...

Basic Math
1.2K views

Perform the indicated operation and express the result in simplest radical 1 6 3 2...

Calculus
1.2K views

Let g x 76 Use the limit definition of the derivative to differentiate g g...

Calculus
1.2K views

7 The number of students S infected by the flu at Gaither High School is...

Algebra
1.2K views

12 At a nursery you pay 6 for 2 plants At this price how much...

Accounting
1.2K views

Whispering Company manufactures equipment. Whisperings products range from simple automated machinery to complex systems containing...

Accounting
1.2K views

Effect of stock split Willey's Grill \& Restaurant Corporation wholesales ovens and ranges to restaurants...

Accounting
1.2K views

You have been offered an engagement to testify as a forensic accounting expert in a...

Accounting
1.2K views

Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its...

Accounting
1.2K views

If the principal products of a manufacturing process are identical, a process cost system is...