50.1K

Verified Solution

Link Copied!

*Please help me complete the table and give clear explaintions of your results! Thank you!

7 O Required Information The following information applies to the questions displayed below.) Part 3 of 3 0.24 points 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; Do Pri Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company 462.000 1004 232.000 500 229,000 508 127,600 280 101,400 226 65,000 140 $36,400 Office Chicago Minneapol 156,000 1008 106,000 19 49,000 308 163,600 GOS 107.000 704 122,400 400 78,00 525 48.960 $ 20,200 IBA 73,440 3. Assume that sales in Chicago increase by $52,000 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. 01234 should be entered as 12.3 and other answers to the nearest whole dollar:) 7 Common fixed expenses not traceable to offices Net operating income 65,000 $36,400 145 81 Part 3 of 3 0.24 points 3. Assume that sales in Chicago increase by $52,000 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.)) Answer is not complete. Chicago Amount Segments Minneapolis % Amount 1000 $ 300.000 100.0 $ 200,000 Total Company Amount % $ 614,000 100.0 48.5 514,000 51.5 250 514,000 26.5 65,000 $ 449,000 26.5 208,000 1000 306.000 Sales Variable expenses Contribution margin Traceable foxed expenses Office segment margin Common foxed expenses not traceable to segments Not operating income 1000 $ 200.000 1000 $ 306.000 1000

Answer & Explanation Solved by verified expert

See Answer