Question 1

work i Saved 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 $ 600,000 180.ex 324,000 54.0% 276,000 46.0% 134,400 22.4% 141,600 23.6% 96,000 16.0 $ 45,600 7.6% Office Chicago Minneapolis $ 120,000 100% $ 480,000 100% 36,000 30% 288,000 84,000 70% 192,800 40 62,400 52% 72,000 $ 21,600 18% $ 120,000 25% 15% Exercise 7-16 Part 3 3. Assume that sales in Chicago increase by S40,000 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 (ie. 0.1234 should be entered as 12.3).) mework Saved Required information 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).) Segments Chicago Minneapolis Total Company Amount Amount Amount