Question

Required Information SB Exercise 6-16 through Exercise 6-17 (Static) (The following information apples 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 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 450,000 100% 225,000 50% 225,000 58X 126,000 28X 99, eee 22% 63,8 14% $ 36,888 8X Office Chicago Minneapolis $ 150, eee 100% $ 380,880 100% 45, eee 30% 180,000 Бөх 1e5, eee 70% 120,000 40X 78,000 52X 48,000 16% 5 27,899 18% $ 72, Bee 245 Exercise 6-16 Part 3 (Static) Working with a Segmented Income Statement; Break-Even Analysis (L06-4, LO6-5) 3. Assume that sales in Chicago increase by $50,000 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).) Segments Total Company Chicago Minneapolis Amount 96 Amount 96 Amount 96 O 0.0 0 0.0 0 0.0 0.0 S 0 0.0 $ 0 0.0 S o 0.0

Answer 1

NAJAFARSTATEMENT Office Total company Chicago minnepolis 100. Sales 5,oopoo 1004-12,00,000* 100-). 3,00,000 variable Expenses 60. (2,40,000) 401 (60,00ot) 30%. 61, 80,000) contribution 2,60,ooo 524). 11,40,000 70 / 1,20,000 40. traceable Fixed Exp. (4,26,000) 25.2% (78,000) 39% (48,000) 16). office segment margin 1, 34,000 26.80 62,000 312 24 721000 common Fixed expa Not traceable (63, 000) 12.606 Met operating Incom 73,onu 14,29% * Note

Note: If sales of chicago increases by $50,000 then total sales now is $2,000oof and the variable expenses is also increases which in is of sales Now 30.1. 07$2,00,000 is$ 60,00 ot, 30 ܩܬ