Required lhtomatlon Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis (LO6-4, LO6-5] [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 $1,125,000 100.0% 607,500 54.8% 517,500 46.0% 252,000 22.4% 265,500 23.6% 180,000 16.8% 85,500 7.6% Office Chicago Minneapolis $ 225,000 100% $ 900,000 100% 67,500 30% 540,000 60% 157,500 70% 360,000 40% 117,600 52% 135,000 15% $ 40,500 18% $225,00 25% Exercise 6-16 Part 3 3. Assume that sales in Chicago Increase by $75,000 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 (.e. 0.1234 should be entered as 12.3).) % Sales Variable expenses Contribution margin Total Company Amount % | $ 1.200.000 630,000 570,000 252,000 318,000 180,000/ | $ 138,000 Chicago Amount 100.01 $ 300,000 90,000 100.0 210,000 117,000 100.00 $ 93,000 Segments Minneapolis Amount 100.0 $ 900,000 30.01 540,000 70.0 360,000 135,000 70.00 $ 225,000 100.0 60.0 40.0 15.0 25.0 Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Net operating income 100.0