Question: please fill out chart ! Required information [The following information applies to the questions displayed below.] Raner, Harris & Chan is a consulting firm that
![the questions displayed below.] Raner, Harris & Chan is a consulting firm](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/10/6716a617e64a5_5596716a6175e59f.jpg)
! 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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 600,000 100.0% $ 120,000 324,000 54.0% 36,000 84,000 62,400 141,600 23.6% $ 21,600 16.0 7.6% 96,000 $ 45,600 Chicago 276,000 46.0% 134,400 22.4% Office 100% 30% 70% 52% 18% Minneapolis $ 480,000 288,000 192,000 40% 72,000 15% 25% $ 120,000 100% 60% 3. Assume that sales in Chicago increase by $40,000 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).) 3. Assume that sales in Chicago increase by $40,000 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).) Total Company Amount % Chicago Amount % Segments Minneapolis Amount %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
