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[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 companys most recent year is given: Office Total Company Chicago Minneapolis Sales $ 787,500 100.0 % $ 157,500 100 % $ 630,000 100 % Variable expenses 425,250 54.0 % 47,250 30 % 378,000 60 % Contribution margin 362,250 46.0 % 110,250 70 % 252,000 40 % Traceable fixed expenses 176,400 22.4 % 81,900 52 % 94,500 15 % Office segment margin 185,850 23.6 % $ 28,350 18 % $ 157,500 25 % Common fixed expenses not traceable to offices 126,000 16.0 % Net operating income $ 59,850 7.6 % 3. Assume that sales in Chicago increase by $52,500 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 .1234 should be entered as 12.3))

Required information [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 100% 30% 70% 52% 18% $787,500 100.0% $630,000 378,000 252,000 94,500 $157,500 100% 60% 40% 15% $157,500 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income 425,250 54.0% 47,250 362,250 176,400 185,850 23.6% $28,350 126,000 16.0% 59,850 46.0% 110,250 81,900 22.4% 28 25 % 7.6% 3. Assume that sales in Chicago increase by $52,500 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 .1234 should be entered as 12.3))

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