Please help with 2 thank you BalesVariable expensesContribution marginTraceable fixed expensesoffice segment marginCommon fixed expenses not traceableto officesNet operating incomeTotal Company# 463,500231,750Net operating income increase231,750129,780101,97064,890$ 37,080100.00%50.00%50.00%28.00%22.00%14.00%8.00%Chicago$ 154,50046,350108,15080,340$ 27,810Office100.00%30.00%70.00%52.00%18.00%Minneapolis$ 309,000185,400123,60049,440$ 74,160100.00%60.00%40.00%16.00%24.00%Exercise 6-16 Part 2 (Algo) Working with a Segmented Income Statement; Break-Even Analysis [LO6-4,LO6-5]2. By how much would the company's net operating income increase if Minneapolis increased its sales by $77,250 per year? Assumeno change in cost behavior patterns. Required informationSB Exercise 6-16 through Exercise 6-17 (Algo)[The following information applies to the questions displayed below.]Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firmhas two offices-one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variablecosts. A contribution format segmented income statement for the company's most recent year is given:SalesVariable expensesContribution marginTraceable fixed expensesOffice segment marginCommon fixed expenses not traceableto officesNet operating incomeTotal Company$ 463,500231,750231,750129,780101,97064,890$ 37,080100.00%50.00%50.00%28.00%22.00%14.00%8.008Chicago$ 154,50046,350108,15080,340$ 27,810Office100.00%30.00%70.00%52.00%18.00%Minneapolis$ 309,000185,400123,60049,440$ 74,160100.00%60.00%40.00%16.00824.00%Exercise 6-16 Part 2 (Algo) Working with a Segmented Income Statement; Break-Even Analysis [LO6-4,LO6-5]

Solution: As we all know that the fixed cost remain same at all level of Production therefore,…

Bales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 463,500 231,750 231,750 129,780 101,970 64,890 $ 37,080 100.00% 50.00% 50.00% 28.00% 22.00% 14.00% 8.00% Chicago $ 154,500 46,350 108, 150 80,340 $ 27,810 office 100.00% 30.00% 70.008 52.00% 18.00% Minneapolis $ 309,000 185,400 123,600 49,440 $74,160 100.00% 60.00% 40.008 16.00% 24.00%

Bales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 463,500 231,750 231,750 129,780 101,970 64,890 $ 37,080 100.00% 50.00% 50.00% 28.00% 22.00% 14.00% 8.00% Chicago $ 154,500 46,350 108, 150 80,340 $ 27,810 office 100.00% 30.00% 70.008 52.00% 18.00% Minneapolis $ 309,000 185,400 123,600 49,440 $74,160 100.00% 60.00% 40.008 16.00% 24.00%

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 49E: Use the following information for Exercises 2-47 through 2-49. Jasper Company provided the following...

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Required information [The following information applies to the questions displayed below.] 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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 454,500 227,250 227,250 127,260 99,990 63,630 $ 36,360 100.00% 50.00% 50.00% 28.00% 22.00% 14.00% 8.00% Chicago $ 151,500 45,450 106,050 78,780 $ 27,270 Office 100.00% 30.00% 70.00% 52.00% 18.00% Minneapolis $ 303,000 181,800 121,200 48,480 $ 72,720 100.00% 60.00% 40.00% 16.00% 24.00% 3. Assume that sales in Chicago increase by $50,500 next year and that sales in Minneapolis remain…
Required information [The following information applies to the questions displayed below.] 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: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 477,000 238,500 238,500 133,560 104,940 66,780 $38,160 100.00% 50.00% 50.00% 28.00% 22.00% 14.00% 8.00% Chicago $ 159,000 47,700 111,300 82,680 $ 28,620 Office 100.00% 30.00% 70.00% 52.00% 18.00 % Minneapolis $318,000 190,800 127, 200 50,880 $ 76,320 100.00% 60.00% 40.00% 16.00% 24.00% Required: 1-a. Compute the companywide break-even point in dollar sales. 1-b. Compute the…
Required information [The following information applies to the questions displayed below.] Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. It 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 below: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company Net operating income increase $ 468,000 234,000 234,000 131,040 102,960 65,520 $ 37,440 100.00% 50.00% 50.00% 28.00% 22.00% 14.00% 8.00% Chicago $ 156,000 46,800 109, 200 81,120 $ 28,080 Office 100.00% 30.00% 70.00% 52.00% 18.00% Minneapolis $ 312,000 187, 200 124,800 49,920 $ 74,880 100.00% 60.00% 40.00% 16.00% 24.00% 2. How much would the company's net operating income increase if…
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Vikarmbhai
Required information [The following information applies to the questions displayed below.] Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. It 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 below: Sales. Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income. Total Company Net operating income increase $ 508,500 254,250 254,250 142,380 111,870 71,190 $ 40,680 100.00% 50.00% 50.00% 28.00% 22.00% 14.00% 8.00% Chicago $ 169,500 50,850 118,650 88,140 $ 30,510 Office 100.00% 30.00% 70.00% 52.00% 18.00% Minneapolis $ 339,000 203,400 135,600 54,240 $ 81,360 100.00% 60.00% 40.00% 16.00% 24.00% woll 2. How much would the company's net operating income increase if…
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Mukh
Required information SB Exercise 7-16 through Exercise 7-17 (Static) [The following information applies to the questions displayed below.] 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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Office Total Company Chicago Minneapolis $ 450,000 100% $ 150,000 100% $ 300,000 100% 225,000 50% 45,000 30% 225,000 50% 105,000 70% 126,000 28% 78,000 52% 99,000 22% $ 27,000 18% 63,000 14% $36,000 8% 180,000 120,000 48,000 60% 40% 16 % $ 72,000 24% Exercise 7-16 Part 3 (Static) Working with a Segmented Income Statement; Break-Even Analysis [LO7-4,…
Please help with 1-3 thank you
Required information SB Exercise 6-16 through Exercise 6-17 (Algo) Skip to question [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: Office Total Company Chicago Minneapolis Sales $ 504,000 100 % $ 177,000 100 % $ 327,000 1 % Variable expenses 261,000 50 % 63,000 30 % 196,200 60 % Contribution margin 243,000 50 % 114,000 70 % 130,800 40 % Traceable fixed expenses 133,200 28 % 81,600 52 % 52,320 16 % Office segment margin 109,800 22 % $ 32,400 18 % $ 78,480 24 % Common fixed expenses not traceable to offices 72,000…
Product costing and decision analysis for a service company Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of medical procedures (operations) that are considered its products. The overhead has been separated into three major activities. The annual estimated activity costs and activity bases follow: Total patient days are determined by multiplying the number of patients by the average length of stay in the hospital. A weighted care unit (wcu) is a measure of nursing effort used to care for patients. There were 192,000 weighted care units estimated for the year. In addition, Pleasant Stay estimated 6,000 patients and 27,000 patient days for the year. (The average patient is expected to have a a little more than a four-day stay in the hospital.) During a portion of the year, Pleasant Stay collected patient information for three selected procedures, as follows: Private insurance reimburses the hospital for these activities at a fixed daily rate of 406 per patient day for all three procedures. Instructions Determine the activity rates. Determine the activity cost for each procedure. Determine the excess or deficiency of reimbursements to activity cost. Interpret your results.