Required information [The following information applies to the questions displayed below.] Raner, Harris and Chan is...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66485466d5700_230664854665b0cf.jpg)
Transcribed Image Text:
Required information [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: Office Total Company Chicago Minneapolis Sales $ 513,000 100.00% Variable expenses 256,500 50.00% Contribution margin 256,500 50.00% $ 171,000 51,300 119,700 100.00% 30.00% $ 342,000 205,200 100.00% 60.00% 70.00% 136,800 40.00% Traceable fixed expenses 143,640 28.00% 88,920 52.00% 54,720 16.00% Office segment margin 112,860 22.00% $ 30,780 18.00% $ 82,080 24.00% Common fixed expenses not traceable to offices 71,820 14.00% Net operating income $ 41,040 8.00% Assume Minneapolis's sales by major market are: Market Minneapolis Medical Dental Sales Variable expenses $ 342,000 100.00% $ 228,000 205,200 60.00% 145,920 100.00% 64.00% $ 114,000 100.00% 59,280 52.00% Contribution margin 136,800 40.00% 82,080 36.00% 54,720 48.00% Traceable fixed expenses 37,620 11.00% 13,680 6.00% 23,940 21.00% Market segment margin 99,180 Common fixed expenses not traceable to markets 17,100 Office segment margin $ 82,080 29.00% 5.00% 24.00% $ 68,400 30.00% $ 30,780 27.00% The company is planning a $5,700 advertising campaign next month in either the Medical or Dental market. Marketing studies indicate this campaign would increase Medical market sales by $45,600 or Dental market sales by $39,900. Required: 1. How much would the company's profits increase (decrease) if it advertised in the Medical market? 2. How much would the company's profits increase (decrease) if it advertised in the Dental market? 3. Should the company advertise in the Medical or Dental market? Required information [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: Office Total Company Chicago Minneapolis Sales $ 513,000 100.00% Variable expenses 256,500 50.00% Contribution margin 256,500 50.00% $ 171,000 51,300 119,700 100.00% 30.00% $ 342,000 205,200 100.00% 60.00% 70.00% 136,800 40.00% Traceable fixed expenses 143,640 28.00% 88,920 52.00% 54,720 16.00% Office segment margin 112,860 22.00% $ 30,780 18.00% $ 82,080 24.00% Common fixed expenses not traceable to offices 71,820 14.00% Net operating income $ 41,040 8.00% Assume Minneapolis's sales by major market are: Market Minneapolis Medical Dental Sales Variable expenses $ 342,000 100.00% $ 228,000 205,200 60.00% 145,920 100.00% 64.00% $ 114,000 100.00% 59,280 52.00% Contribution margin 136,800 40.00% 82,080 36.00% 54,720 48.00% Traceable fixed expenses 37,620 11.00% 13,680 6.00% 23,940 21.00% Market segment margin 99,180 Common fixed expenses not traceable to markets 17,100 Office segment margin $ 82,080 29.00% 5.00% 24.00% $ 68,400 30.00% $ 30,780 27.00% The company is planning a $5,700 advertising campaign next month in either the Medical or Dental market. Marketing studies indicate this campaign would increase Medical market sales by $45,600 or Dental market sales by $39,900. Required: 1. How much would the company's profits increase (decrease) if it advertised in the Medical market? 2. How much would the company's profits increase (decrease) if it advertised in the Dental market? 3. Should the company advertise in the Medical or Dental market?
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
An air-filled X-band rectangular waveguide has dimensions a = 2.286 cm and b = 1.016 cm. If the waveguide has copper walls ( = o , = o , = 5.8 x 10 7 S/m), find the attenuation in dB/m due to the...
-
a. Explain the advantages of using GAS to assist with audits and give several examples of how it may be used. b. Describe the audit purpose facilitated and the procedural steps to be followed when...
-
Free cash flow does not affect common shareholders' equity. True or false?
-
On January 1, Lowe, Inc., issued \$500,000 of ten percent, 20-year bonds for \(\$ 598,964\), yielding an effective interest rate of eight percent. Semiannual interest is payable on June 30 and...
-
A summary of data from Pinder Construction Supply Companys income statements and balance sheets for 2014 and 2013 follows. Total assets and owners equity at the beginning of 2013 were $1,360,000 and...
-
For this problem , all M &M with taxes ( 4 0 % ) assumptions apply. After a successful college football career , Tim Turbo partnered with Danny Waffle ( naming themselves TD Industries ) to...
-
Calculate the mass of a solid gold rectangular bar that has dimensions /wh = 4.10 cm x 14.0 cm x 28.0 cm. (The density of gold is 19.3 x 10 kg/m.) kg
-
Mary Brown had been working at Wealth Blueprint Enterprises for fifteen (15) years, as a model employee who received several accolades within the company and industry, based on her stellar work...
-
Once logged in, go to My ATI, select the "Learn" tab and select "Nurse's Touch: The Leader: Case 2." Watch the video in each stage and answer the multiple-choice questions that follow the video to...
-
Identify and describe one (1) aspect of payroll requirements for which you will need independent expert advice. Sources of independent expert advice may include but are not limited to: o Financial...
-
2. Assume you want to go with Vendor 1 after RFPs evaluated. Now you must perform a cost-benefit analysis to see if it is feasible to entirely outsource. Create an Excel spreadsheet calculations....
-
Discuss the sources of authority for company regulation, record-keeping and reporting and explain which functions of the company should a company accountant be familiar with.
-
The CEO, Celeste, asked department administrators to relay her message of sincere congratulations and appreciation to the staff for their hard work in obtaining their institutional re-accreditation...
-
The following cost information was provided to you for analysis: September 12,000 Units Produced Costs: TIC TAC TOE TING August 10,000 P80,000 70.000 60.000 50,000 How much is the fixed cost per...
-
Sarah Saxon and Jane Rolf are partners in a business called J & S Service. The partnership's work sheet for the year ended December 31 of the current year is provided in the Working Papers....
-
Donald Winn and Judy Reed agreed to liquidate their partnership on June 30 of the current year. On that date, after financial statements were prepared and closing entries were posted, the general...
-
Theresa Doran and Roy Eden are partners in a business called D & E Sales. The partnership's work sheet for the year ended December 31 of the current year is provided in the Working Papers. ...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App