2 Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis (L07-4, L07-5) [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: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $1,012,500 100.00 546,750 54.00 465,750 46.00 226,800 22.40 238,950 23.60 162,000 16.01 $ 76,950 7.65 Office Chicago Minneapolis $ 202,500 1001 $ 810,000 1000 60,250 300 486,000 604 141,750 701 324,000 400 105,300 520 121,500 150 $ 36,450 188 $ 202,500 25 Exercise 7-16 Part 2 2. Assume that sales in Chicago increase by $67,500 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. 0.1234 should be entered as 12.3).) Exercise 7-16 Part 2 2. Assume that sales in Chicago increase by $67,500 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. 0.1234 should be entered as 12.3).) Total Company Amount % Chicago Amount Segments Minneapolis Amount % %