Question: I just cannot figure out the variable expenses and then the percentages for the total company !!! ! Required information Exercise 7-16 Working with a

 I just cannot figure out the variable expenses and then thepercentages for the total company !!! ! Required information Exercise 7-16 Working

I just cannot figure out the variable expenses and then the percentages for the total company !!!

! Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis (L07-4, LO7-5] (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 $ 937,500 100.0% 506,250 54.0% 431,250 46.0% 210,000 22.4% 221,250 23.6% 150,000 16.0% $ 71,250 7.6% Office Chicago Minneapolis $ 187,500 100% $ 750,000 100% 56,250 30% 450,000 60% 131,250 70% 300,000 40% 97,500 52% 112,500 15% $ 33,750 18% $ 187,500 25% 2. Assume that sales in Chicago increase by $62,500 next year and that sales in Minneapolis remain unchanged. Assume no char 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).) Segments Total Company Chicago Minneapolis Amount % Amount % Amount % Sales $ 1,000,000 100.0 100.0 $ 750,000 100.0 Variable expenses 30.0 450,000 60.0 1,000,000 100.0 0 70.0 300,000 40.0 Contribution margin Traceable fixed expenses 210,000 15.0 97,500 100.0 $ (97,500) 112,500 187,500 790,000 70.0 $ 25.0 Office segment margin Common fixed expenses not traceable to segments Net operating income 150,000 $ 640,000 100.0

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