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Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis [LO7-4, LO7-5] [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 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: Office Total company Chicago Minneapolis Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margirn Common fixed expenses not traceable to offices Net operating income $450,000 100.08 $90,000 1008 360,000 1008 216,000 605 0850608 27,000 305- 63,000 46,800 243,000 54.08 308 207,000 46,8 46.08 40% 4.000 158 258 4,000 40- 100,800 22.48 52% 188 $ 90,000 106,200 23.68 $ 16,200 72,000 16.0* $ 34,200 7.6 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).) Segments Total Company Chicago Minneapolis Amount Amount Amount 0.0 0.0 0.0 0.0 S 0.0 S 0.0 0.0

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