Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm hastwo 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:OfficeTotal Company$ 513,000256, 500Minneapolis$ 342,000205,200136,80054, 720Chicago$ 171,000100.00%100.00%100.00%Sales30.00%60.00%51,300119, 70088,920$ 30,78050.00%Variable expensesContribution marginTraceable fixed expenses70.00%52.00%40.00%16.00%50.00%256,500143,64028.00%18.00%$ 82,08024.00%112,86022.00%Office segment marginCommon fixed expenses not traceable tooffices71,82014.00%$ 41,0408.00%Net operating income3. Assume that sales in Chicago increase by $57,000 next year and that sales in Minneapolis remain unchanged. Assume no change infixed costs.a. Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.))encesSegmentsTotal CompanyMinneapolisChicagoAmountAmountAmount< Prev3 of 3NextMcGrawHillAiPrP Type here to searchLEUSlogiSTARWARS

Solution: New segmented income statement is as under: Segment Income Statement Office…

Answered: Raner, Harris & Chan is a consulting…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 Total Company $ 495,000 100% 247,5ee 58% 247,500 sex 138,600 28% 108,900 22% 69,300 14% $39,600 $ 165,000 100% 49,500 30% 115,500 70% 85,800 52% $ 29,700 18% Minneapolis $ 330,000 100% 198,000 60% 132,000 48% 52,800 16% 24% Traceable fixed expenses $ 79,200 Office segment margin Common fixed expenses not traceable to offices Net operating income 8% 3. Assume that sales in Chicago Increase by $55,000 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…
Spruce−Up Company provides cleaning services to commercial and residential customers. The commercial business segment provided services to 290 customers and the residential business segment provided services to 645 customers. Commercial Residential Total Service Revenue $93,000 $123,000 $216,000 Variable Costs 26,000 49,000 75,000 Fixed Costs 47,000 53,000 100,000 Operating Income $20,000 $21,000 $41,000 Identify the segment with the lower contribution margin ratio and show the amount of its contribution margin ratio. (Round your answer to two decimals.) A. Residential, 60.16% B. Residential, 39.84% C. Commercial, 21.51% D. Commercial, 44.96%
I need a very detailing explanation on how to get the answers please
A sada manufacturer has two operating departments. Miong and Botting Mixing has 600 employees and Botting has 400 employees. Office costs of $320,000 are allocated to operating departments based number of employees. The office costs allocated to the Botting department are Murple Choice O O O $90,000 $64,000 $200,000 $192.000
Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) 220 160 180 Ending (units) 160 180 240 Variable costing net operating income $ 290,000 $ 269,000 $ 250,000 The company’s fixed manufacturing overhead per unit was constant at $560 for all three years. Required: 1. Calculate each year’s absorption costing net operating income. (Enter any losses or deductions as a negative value.)
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PC Solutions, Inc. provides services to corporate and individual customers. During the month of June, the corporate business segment provided services to 500 customers and earned $60,000 in revenue. The individual business segment provided services to 200 customers and earned $40,000 in revenue. The variable costs for the corporate and individual business segments amounted to $33,000 and $25,000, respectively. In addition, the fixed costs of the company amounted to $7,500. Calculate the contribution margin from each customer of the individual business segment. (Round your answer to the nearest cent.) O A. $37.50 OB. $54.00 OC. $39.00 OD. $75.00
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 classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the company's most recent year is given below: Office Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Operating income Increase in operating income $ Total Company $900,000 100.0% 414,000 46.00 486,000 54.00 187,200 20.80 298,800 33.20 Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $87,000 per year? Assume no change in cost behaviour patterns. 43,500 117,000 13.00 $181,800 20.20% Toronto Vancouver $120,000 100% $780,000 100% 390,000 50 24,000 20 96,000 80 390,000 50 140,400 18 46,800 39 $ 49,200 41% $249,600 32% 2-a. Refer to…
Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR West East IT -- 0% 20% 40% 40% Accounting 0% -- 0% 40% 60% HR 10% 10% -- 60% 20% The direct costs of the service departments in the previous period were $91,000 for IT, $116,000 for Accounting, and $155,000 for HR. Required: Use the step method to allocate the service department costs to the two production departments. Allocate HR costs first, followed by IT, and then Accounting. Note: Amounts to be deducted should be indicated by a minus sign. IT Accounting HR West East Service department costs $ 0 HR allocation IT allocation Accounting allocation Total costs allocated $ 0 $ 0 $ 0 $ 0 $ 0 Need help please
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: Total Company Office Chicago Minneapolis Sales $ 468,000 100.00% $ 156,000 100.00% $ 312,000 100.00% Variable expenses 234,000 50.00% 46,800 30.00% 187,200 60.00% Contribution margin 234,000 50.00% 109,200 70.00% 124,800 40.00% Traceable fixed expenses 131,040 28.00% 81,120 52.00% 49,920 16.00% Office segment margin 102,960 22.00% $ 28,080 18.00% $ 74,880 24.00% Common fixed expenses not traceable to offices 65,520 14.00% Net operating income $ 37,440 8.00% Exercise 6-17 (Algo) Working with a Segmented Income Statement [LO6-4] Assume Minneapolis’s sales by major market are: Minneapolis Market…
Oriole produces and sells two products-aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line's return on investment. The following data is from the most recent year of operations, Aluminum Vinyl Sales $4,000,000 $4,350,000 Variable costs 2,050,000 2,403,750 Direct fixed costs 1,520,000 1,533,000 Average assets 2,000,000 1,500,000 (31) Your answer is correct. Calculate the margin and asset turnover for each product line. (Round answers to 2 decimal places, eg. 5.12 and 5,12%) Aluminum Vinyl Margin 10.75 % 9.50 % 2.00 2.90 Your answer is correct. Calculate return on investment for each product line. (Round ROI to 2 decimal places, e.g. 5.12 %) Aluminum Vinyl ROI 21.50 % 27.55 % eTextbook and Media Attempts: unlimited Both product line managers would like to improve their respective returns on investment, and each manager has a different idea about how to accomplish this. If the…

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