Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 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: Office Chicago Sales. Variable expenses Contribution margin. Minneapolis $ 150,000 100% $ 300,000. 100% 45,000 30% 105,000 70% 78,000 52% $ 27,000 18% 180,000 60% 120,000 40% Total Company $ 450,000 100% 225,000 50% 225,000 50% 126,000 28% 99,000 22% 63,000 14% $36,000 8% Traceable fixed expenses 48,000 16% $ 72,000 24% Office segment margin Common fixed expenses not traceable to offices. Net operating income 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).) Segments Total Company Amount Chicago Amount Minneapolis Amount % 0 0 0 0 0 0 $ 0.0 0.0 $ 0.0 % 0.0 0.0 $ 0 0.0 0.0 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 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: Office Chicago Sales. Variable expenses Contribution margin. Minneapolis $ 150,000 100% $ 300,000. 100% 45,000 30% 105,000 70% 78,000 52% $ 27,000 18% 180,000 60% 120,000 40% Total Company $ 450,000 100% 225,000 50% 225,000 50% 126,000 28% 99,000 22% 63,000 14% $36,000 8% Traceable fixed expenses 48,000 16% $ 72,000 24% Office segment margin Common fixed expenses not traceable to offices. Net operating income 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).) Segments Total Company Amount Chicago Amount Minneapolis Amount % 0 0 0 0 0 0 $ 0.0 0.0 $ 0.0 % 0.0 0.0 $ 0 0.0 0.0
Expert Answer:
Answer rating: 100% (QA)
3 a The new segmented income statement for the company is provided below A B D E F RHC Contribution ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone in Chicago and one in Minneapolis. The firm classifies...
-
Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices one in Toronto and one in Vancouver. The firm...
-
Marple Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two officesone in Houston and one in Dallas. The firm...
-
A proposed project has fixed costs of $84,000 per year. The operating cash flow at 7,500 units is $93,000. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise...
-
Stone Sour, Inc., has a project with the following cash flows: Year Cash Flows ($) 0 ......... -$ 20,000 1 ......... 8,500 2 ......... 10,200 3 ......... 6,200 The company evaluates all projects by...
-
Write the electron configuration for the 2+ cation of calcium.
-
A compressor of mass \(120 \mathrm{~kg}\) has a rotating unbalance of \(0.2 \mathrm{~kg}-\mathrm{m}\). If an isolator of stiffness \(0.5 \mathrm{MN} / \mathrm{m}\) and damping ratio 0.06 is used,...
-
The following information was taken from the records of Ryder Cosmetics, Inc., at December 31, 2014: Requirements 1. Using the End-of-Chapter Summary Problem (pages 637 638) as an example, prepare...
-
On November 1, 2017, Hunter opened a sandwich shop in Northridge across the street from a sandwich shop run by Donald. Donald's sandwich shop had been in business for 10 years and had made between...
-
Assume you have an graph as following. Use Dijkstra Algortihm to calculate shortest path from vertex A to every vertex (manuel calculation). Write the Dijkstra code to generate this graph and find...
-
Data related to the inventories of Costco Medical Supply are presented below: In applying the lower of cost and net realizable value rule, the inventory of rehab supplies would be valued at: Selling...
-
1 Rationalize the denominator: 3 A The result can be expressed in the form where B A = B =
-
An arrow is shot vertically upward from a platform 29 ft high at a rate of 157 ft/sec. When will the arrow hit the ground? Use the formula: h=-161 + vol + ho (Round your answer to the nearest tenth.)
-
Find the real solutions of the equation. X 2+x-2=0
-
Suppose that the relation S is defined as follows. S={(1, 1), (1, 9), (0, -4), (-4, 7)} Give the domain and range of S. Write your answers using set notation. domain= range=
-
Find solutions of + 2 == -6 x-1 x+2x+x=2
-
Look at the graph, Could you pls identify how education level affect satisfaction levels? 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 50%0% Neutral Satisfied 0% Frimary Dissatified 0% 50% 50% 69% 28% 3%...
-
The liquidliquid extractor in Figure 8.1 operates at 100F and a nominal pressure of 15 psia. For the feed and solvent flows shown, determine the number of equilibrium stages to extract 99.5% of the...
-
For the year just completed, Hanna Company had net income of $35,000. Balances in the companys current asset and current liability accounts at the beginning and end of the year were as follows: The...
-
The table shown below contains a variety of performance measures that companies might use as internal business process measures in their balanced scorecards. Each measure is accompanied by a + or to...
-
Linda Clark received $175,000 from her mothers estate. She placed the funds into the hands of a broker, who purchased the following securities on Lindas behalf: a. Common stock was purchased at a...
-
Under what conditions can WTO members not use MFN when dealing with one another?
-
What does most favored nation (MFN) mean?
-
Why do free trade areas develop rules of origin?
Study smarter with the SolutionInn App