Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 510,000 100% 265,000 50% 245,000 50% 134,000 28% 111,000 22% 73,000 14% $ 38,000 8% Chicago $ 180,000 100% 65,000 30% 115,000 70% 82,000 52% $ 33,000 18% Minneapolis $ 330,000 17 198,000 60% 132,000 40% 52,800 16% $ 79,200 248 3. Assume that sales in Chicago increase by $60,000 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 intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.) Segments Total Company Chicago Minneapolis Amount % Amount % % Amount $ 330,000 570,000 100.0 $ 240,000 100.0 100.0 Sales Variable expenses 198,000 60.0 570,000 100.0 240,000 100.0 132,000 40.0 Contribution margin Traceable fixed expenses 52,800 570,000 100.0 $ 240,000 100.0 $ 79,200 40.0 Office segment margin Common fixed expenses not traceable to segments Net operating income $ 570,000 100.0 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 510,000 100% 265,000 50% 245,000 50% 134,000 28% 111,000 22% 73,000 14% $ 38,000 8% Chicago $ 180,000 100% 65,000 30% 115,000 70% 82,000 52% $ 33,000 18% Minneapolis $ 330,000 17 198,000 60% 132,000 40% 52,800 16% $ 79,200 248 3. Assume that sales in Chicago increase by $60,000 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 intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.) Segments Total Company Chicago Minneapolis Amount % Amount % % Amount $ 330,000 570,000 100.0 $ 240,000 100.0 100.0 Sales Variable expenses 198,000 60.0 570,000 100.0 240,000 100.0 132,000 40.0 Contribution margin Traceable fixed expenses 52,800 570,000 100.0 $ 240,000 100.0 $ 79,200 40.0 Office segment margin Common fixed expenses not traceable to segments Net operating income $ 570,000 100.0