Question: how can i solve the wrong ones ? Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental

Raner, Harris and 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 Minneapolls. 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 sepeent margin Common fixed expenses not traceable to offices Net operating income Total Company $ 450,000 100% 225,000 sex 225,000 50x 126,000 28% 99,000 22% Chicago $ 150,000 45,000 105,000 78,000 $ 27,000 Office Minneapolis 100% $ 300,000 100% 30% 180,000 60% 70% 120,000 40% 52% 48,000 16% 18% $72,000 24% 63.000 $ 36,000 14% BX 3. Assume that sales in Chicago increase by $50.000 next year and that sales in Minneapolis remain unchanged. Assume no chalige 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).) Answer is complete but not entirely correct. 3. Assume that sales in Chicago increase by $50,000 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).) Answer is complete but not entirely correct. Segments Total Company Chicago Minneapolis Amount % Amount % Amount % S 500 000 1000 $ 200.000 100.0 $ 300,000 1000 240,000 480 60 000 300 180,000 600 260.000 520 140,000 700 120,000 400 126,000 252 78,000 55.7% 48.000 666 X 134,000 26.8 $ 62,000 143 $ 72 000 (266) 30,547 126 S 103,453 142 >$ Sales Vanable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Net operating income O
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
