Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. raner, harris and chan is a consulting firm that s

Raner, Harris and Chan is a consulting firm that specializes in information systems for medical...

80.2K

Verified Solution

Question

Accounting

Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone 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 companys most recent year is given:

Total Company Office
Chicago Minneapolis
Sales $ 459,000 100.00% $ 153,000 100.00% $ 306,000 100.00%
Variable expenses 229,500 50.00% 45,900 30.00% 183,600 60.00%
Contribution margin 229,500 50.00% 107,100 70.00% 122,400 40.00%
Traceable fixed expenses 128,520 28.00% 79,560 52.00% 48,960 16.00%
Office segment margin 100,980 22.00% $ 27,540 18.00% $ 73,440 24.00%
Common fixed expenses not traceable to offices 64,260 14.00%
Net operating income $ 36,720 8.00%

3. Assume that sales in Chicago increase by $51,000 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 & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A farmer has been given the opportunity to become a part owner in a local fertilizer...

Finance
Q

Electronic configurations follow from the principle quantum numbers n, l, m, and s. What is the...

Chemistry
Q

Provide the instruction type, assembly language instruction, and binary representation of the instruction described by the...

Programming
Q

What do you think of Howard Gardner's theory of Multiple Intelligence? Do you think that people can...

Psychology
Q

6 A geometric sequence has 32 as its first term and a common ration of...

Algebra
Q

Given the function C n n 1 n 7 n 4 the coordinates of its...

Algebra
Q

Identify the type of reserve which is generally used for specific purposes like long-term...

Accounting
Q

1. You are provided with the following information about the Heartland Hotel Corporation. Calculate the...

Accounting
Q

Exercise 21-3(Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on...

Accounting
Q

What is the proper adjusting entry at June 30, the end of the fiscal year,...

Accounting
Q

Preparing a Classified Balance Sheet The following balances are from the post-closing trial balance of...

Accounting
Q

Jensen Inc. has total equity of $73 billion and 675 million shares outstanding. Its ROE...

Finance