Question: 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

 Raner, Harris & Chan is a consulting firm that specializes in

information systems for medical and dental clinics. The firm has two offices-one

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: Office Total Company Chicago Minneapolis Sales $ 937,500 100.84 $ 187,500 1004 $ 750,000 100% Variable expenses 506,250 54.04 56,250 304 450,000 Contribution margin 431,250 46.00 131,250 704 300,000 404 Traceable fixed expenses 210,000 22.44 97,500 524 112,500 154 office segment margin 221,250 23.64 $ 33,750 184 $ 187,500 25 Common fixed expenses not traceable to offices 150,000 16.04 Net operating income $ 71,250 7.69 bes Exercise 7-16 Part 3 3. Assume that sales in Chicago increase by $62,500 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).)

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