Required information[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 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 CompanyChicagoMinneapolis$ 420,000$ 525,000283,500241,500Sales100.0%$ 105,000100%100%Variable expenses54.0%31,50030%252,00060%Contribution marginTraceable fixed expenses70%52%46.0%73,50054,600168,00063,00040%117, 60022.4%15%Office segment margin123,90023.6%$18,90018%$ 105,00025%84,000$4Common fixed expenses not traceable to offices16.0%Net operating income39,9007.6%2. By how much would the company's net operating income increase if Minneapolis increased its sales by $52,500 per year? Assumeno change in cost behavior patterns.Net operating income increase

Minneapolis contribution margin ratio = 40% Increase In sales = $ 52500

Required information [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 $ 525,000 283, 500 241,500 117,600 Chicago $ 105,000 31,500 73,500 Minneapolis $ 420,000 252,000 168,000 Sales 100.0% 100% 100% Variable expenses Contribution margin Traceable fixed expenses 54.0% 46.0% 30% 60% 70% 40% 22.4% 54,600 52% 63,000 15% Office segment margin 123,900 23.6% 18,900 18% $ 105,000 25% Common fixed expenses not traceable to offices 84,000 16.0% Net operating income 2$ 39,900 7.6% 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $52,500 per year? Assume no change in cost behavior patterns. Net operating income increase

Required information [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 $ 525,000 283, 500 241,500 117,600 Chicago $ 105,000 31,500 73,500 Minneapolis $ 420,000 252,000 168,000 Sales 100.0% 100% 100% Variable expenses Contribution margin Traceable fixed expenses 54.0% 46.0% 30% 60% 70% 40% 22.4% 54,600 52% 63,000 15% Office segment margin 123,900 23.6% 18,900 18% $ 105,000 25% Common fixed expenses not traceable to offices 84,000 16.0% Net operating income 2$ 39,900 7.6% 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $52,500 per year? Assume no change in cost behavior patterns. Net operating income increase

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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