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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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 490,500 100% 245,250 50% 245,250 50% 137,340 28% 107,910 22% 68,670 14% $ 39,240 8% Office Chicago $ 163,500 100% 49,050 30% 114,450 70% 85,020 52% 18% $ 29,430 Minneapolis $ 327,000 100% 196, 200 60% 130,800 40% 52,320 16% 24% $ 78,480

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 $ 490,500 100% 245,250 50% 245,250 50% 137,340 28% 107,910 22% 68,670 14% $ 39,240 8% Office Chicago $ 163,500 100% 49,050 30% 114,450 70% 85,020 52% 18% $ 29,430 Minneapolis $ 327,000 100% 196, 200 60% 130,800 40% 52,320 16% 24% $ 78,480

FINANCIAL ACCOUNTING
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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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 Total Company $ 490,500 100% 245,250 50% 245,250 50% 137,340 28% 107,910 22% 68,670 14% $ 39,240 8% Amount < Prev % Assume that sales in Chicago increase by $54,500 next year and that sales in Minneapolis remain unchanged. Assume no change ixed costs. LO Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to ecimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) 4 5 Amount Chicago Chicago of 11 $ 163,500 49,050 114,450 100% 30% 70% 85,020 52% $ 29,430 18% --- ‒‒‒ Office % Segments Next > Minneapolis $ 327,000 100% 196, 200 60% 130,800 40% 52,320 16% $ 78,480 24% Amount Minneapolis %
Transcribed Image Text: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 Total Company $ 490,500 100% 245,250 50% 245,250 50% 137,340 28% 107,910 22% 68,670 14% $ 39,240 8% Amount < Prev % Assume that sales in Chicago increase by $54,500 next year and that sales in Minneapolis remain unchanged. Assume no change ixed costs. LO Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to ecimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) 4 5 Amount Chicago Chicago of 11 $ 163,500 49,050 114,450 100% 30% 70% 85,020 52% $ 29,430 18% --- ‒‒‒ Office % Segments Next > Minneapolis $ 327,000 100% 196, 200 60% 130,800 40% 52,320 16% $ 78,480 24% Amount Minneapolis %
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