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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 $ 477,000 100 238,500 504 238,500 50 133,560 284 104,940 22% 66,780 144 $38,160 IN Office Chicago $ 159,000 100 47,700 30% 111,300 70% 82,680 524 30% $ 20,620 Total Company 3. Assume that sales in Chicago increase by $53,000 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 (ie. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar)) Chicago Minneapolis $318,000 100% 190,800 60% 127,200 40% 50,880 16% 24% $ 76,320 Segments Minneapolis

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 $ 477,000 100 238,500 504 238,500 50 133,560 284 104,940 22% 66,780 144 $38,160 IN Office Chicago $ 159,000 100 47,700 30% 111,300 70% 82,680 524 30% $ 20,620 Total Company 3. Assume that sales in Chicago increase by $53,000 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 (ie. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar)) Chicago Minneapolis $318,000 100% 190,800 60% 127,200 40% 50,880 16% 24% $ 76,320 Segments Minneapolis

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $ 477,000 Chicago 100% $ 159,000 238,500 50% 238,500 50 133,560 28% 104,940 22% 66,780 14% $ 38,160 84 Total Company L Office 100% 47,700 30% 111,300 70% 82,680 52% $28,620 10% 3. Assume that sales in Chicago increase by $53,000 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 (ie. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Chicago Minneapolis 5318,000 100% 190,800 60% 127,200 40% 50,880 16% $ 76,320 24% Segments Minneapolis Amerist
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 $ 477,000 Chicago 100% $ 159,000 238,500 50% 238,500 50 133,560 28% 104,940 22% 66,780 14% $ 38,160 84 Total Company L Office 100% 47,700 30% 111,300 70% 82,680 52% $28,620 10% 3. Assume that sales in Chicago increase by $53,000 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 (ie. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Chicago Minneapolis 5318,000 100% 190,800 60% 127,200 40% 50,880 16% $ 76,320 24% Segments Minneapolis Amerist
office segment margin Common fixed expenses not traceable to offices Net operating income Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Net operating income 3. Assume that sales in Chicago increase by $53,000 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.)) Amount $ Total Company $ 104,948 22% 66,780 14% $ 38,160 84 530,000 254,400 275,600 133,560 142,040 142,040 >.20,020 Amount 100.0 $ 212.000 63,600 148,400 82,680 100.0 $ 65,720 100.0 100.0 Chicago 109 % Segments > /0,320 245 30.0 70.0 Amount 100.0 $318,000 18.0 $ Minneapolis 190,800 127.200 50,880 76,320 % 100.0 60.0 40.0 16.0 24.0 Check my work
Transcribed Image Text:office segment margin Common fixed expenses not traceable to offices Net operating income Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to segments Net operating income 3. Assume that sales in Chicago increase by $53,000 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.)) Amount $ Total Company $ 104,948 22% 66,780 14% $ 38,160 84 530,000 254,400 275,600 133,560 142,040 142,040 >.20,020 Amount 100.0 $ 212.000 63,600 148,400 82,680 100.0 $ 65,720 100.0 100.0 Chicago 109 % Segments > /0,320 245 30.0 70.0 Amount 100.0 $318,000 18.0 $ Minneapolis 190,800 127.200 50,880 76,320 % 100.0 60.0 40.0 16.0 24.0 Check my work
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