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[The following information applies to the questions displayed below.] Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. It 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 below: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Sales Variable expenses Contribution margin Traceable fixed expenses Total Company Office segment margin Common fixed expenses not traceable to segments Net operating income $ 499,500 249,750 249,750 139,860 109,890 69,930 $ 39,960 $ 100.00% 50.00% 50.00% 28.00% 22.00% Amount Total Company 0 14.00% 8.00% 0 3. Assume sales in Chicago increase by $55,500 next year and sales in Minneapolis and all fixed costs remain unchanged. a. Prepare a new segmented income statement for the company. Note: Round your intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.) 0 % $ 166,500 49,950 116,550 86,580 $ 29,970 0.0 0.0 Chicago 0.0 $ Amount Chicago 0 100.00% 30.00% 70.00% 52.00% 18.00% 0 Office % $ 333,000 199,800 133,200 53,280 $ 79,920 Segments 0.0 Minneapolis 0.0 $ Minneapolis Amount 100.00% 60.00% 40.00% 16.00% 24.00% 0 0 % 0.0 0.0

[The following information applies to the questions displayed below.] Raner. Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices - one in Chicago and one in Minneapolls. It classifles the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company's most recent year is given below: 3. Assume sales in Chicago increase by $55,500 next year and sales in Minneapolis and all fixed costs remain unchanged. a. Prepare a new segmented income statement for the company. Note: Round your intermediate calculations and percentage answers to 1 decimal place (1.e. 0.1234 should be entered as 12.3 an other answers to the nearest whole dollar.)

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