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...

60.1K

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

During the metabolism of amino acids, amino groups are often switched from one organic compound to another...

Chemistry
Q

course: Engineering Geology The scope of this course covers 10 key Chapters. Summarise the content of each...

Civil Engineering
Q

Using a large bucket whose volume is known and measuring the time it takes to fill...

Mechanical Engineering
Q

Course: Marketing Management For a product of your own choosing, pick one logical variable (e.g., age) that...

Basic Math
Q

I have three questions that I need assistance with: What is your interpretation of capital resources...

General Management
Q

Suppose that a “word” is any string of six letters. Repeated letters are allowed. For our...

Advance Math
Q

ERROR ANALYSIS Describe the error in the diagram of OC Find two ways to correct...

Geometry
Q

Use the method of Lagrange multipliers to minimize the function subject to the given constraint.Minimize...

Calculus
Q

Jordan Company established a predetermined fixed overhead cost rate of $36 per unit of product....

Accounting
Q

Prepare a statement of cash flows (indirect method) for the year 2018. Use the minus...

Accounting
Q

. Knightstown has a property tax base with an appraised value consisting of $142,000,000 of...

Accounting
Q

Question 2 Your firm wants to issue more equity but finds it costly to do...

Finance