Segmented Income Statement Assignment | Top Universities

Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] 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:

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Office Total Company $1,125,000 607,500 517,500 252,000 Chicago $ 225,000 Minneapolis $ 900,000 Sales Variable expenses Contribution margin Traceable fixed expenses 100.0% 54.0% 46.0% 22.4% 100% 100% 67,500 157,500 117,000 30% 540,000 60% 70% 360,000 135,000 40% 15 % 52 % Office segment margin 265,500 23.6% 40,500 18% $ 225,000 25% Common fixed expenses not traceable to offices Net operating income 180,000 16.0% 85,500 7,6% 3. Assume that sales in Chicago increase by $75,000 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 percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Answer is not complete. Segments Total Company Chicago Minneapolis % % % Amount Amount Amount Sales Variable expenses 0.0 0.0 0 0.0 Contribution margin Traceable fixed expenses 0.0 0 0 0.0 0.0 Office segment margin Common fixed expenses not traceable to segments Net operating income 00. Get Accounting homework help today

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