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 | Chicago | Minneapolis | |||||||||||||||
Sales | $ | 637,500 | 100.0 | % | $ | 127,500 | 100 | % | $ | 510,000 | 100 | % | |||||
Variable expenses | 344,250 | 54.0 | % | 38,250 | 30 | % | 306,000 | 60 | % | ||||||||
Contribution margin | 293,250 | 46.0 | % | 89,250 | 70 | % | 204,000 | 40 | % | ||||||||
Traceable fixed expenses | 142,800 | 22.4 | % | 66,300 | 52 | % | 76,500 | 15 | % | ||||||||
Office segment margin | 150,450 | 23.6 | % | $ | 22,950 | 18 | % | $ | 127,500 | 25 | % | ||||||
Common fixed expenses not traceable to offices | 102,000 | 16.0 | % | ||||||||||||||
Net operating income | $ | 48,450 | 7.6 | % | |||||||||||||
3. Assume that sales in Chicago increase by $42,500 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).)
Office | ||||||
Total Company | Chicago | Minneapolis | ||||
Sales | $ 6,80,000 | 100.0% | $ 1,70,000 | 100.0% | $ 5,10,000 | 100.0% |
Variable expenses | $ 3,57,000 | 52.5% | $ 51,000 | 30.0% | $ 3,06,000 | 60.0% |
Contribution Margin | $ 3,23,000 | 47.5% | $ 1,19,000 | 70.0% | $ 2,04,000 | 40.0% |
Traceable fixed expenses | $ 1,42,800 | 21.0% | $ 66,300 | 39.0% | $ 76,500 | 15.0% |
Office Segment margin | $ 1,80,200 | 26.5% | $ 52,700 | 31.0% | $ 1,27,500 | 25.0% |
Common fixed expenses not traceable to officers | $ 1,02,000 | 15.0% | ||||
Net Operating income | $ 78,200 | 11.5% | ||||
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
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 Chicago Minneapolis Sales $ 637,500 100.0 % $ 127,500 100 % $ 510,000 100 % Variable expenses 344,250 54.0 % 38,250 30...
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 Chicago Minneapolis Sales $ 637,500 100.0 % $ 127,500 100...
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 Chicago Minneapolis Sales Variable expenses Contribution margin Traceable fixed expenses Office...
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 givern Office Chicago Total Company 344,250 293,25046.08 Minneapolis Sales Variable expenses Contribution margin Traceable fixed...
Required information The following information applies to the questions displayed below.) Part 1 of 3 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: 10 points eBook Sales Variable expenses Contribution margin Traceable fixed...
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 Chicago Minneapolis Sales $ 412,500 100.0 % $ 82,500 100 % $ 330,000 100 % Variable expenses 222,750 54.0 % 24,750 30...
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 Chicago Minneapolis Sales $ 1,050,000 100.0 % $ 210,000 100 % $ 840,000 100 % Variable expenses 567,000 54.0 % 63,000 30...
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 Chicago Minneapolis Sales $ 1,125,000 100.0 % $ 225,000 100 % $ 900,000 100 % Variable expenses 607,500 54.0 % 67,500 30...
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 Chicago Minneapolis Sales $ 1,087,500 100.0 % $ 217,500 100 % $ 870,000 100 % Variable expenses 587,250 54.0 % 65,250 30...
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 Chicago Minneapolis Sales $ 1,050,000 100.0 % $ 210,000 100 % $ 840,000 100 % Variable expenses 567,000 54.0 % 63,000 30...