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 below:
| Office | ||||||
| Total Company | Chicago | Minneapolis | ||||
| Sales | $600,000 | 100% | $120,000 | 100% | $480,000 | 100% |
| Variable expenses |
324,000
|
54%
|
36,000
|
30%
|
288,000
|
60%
|
| Contribution margin | 276,000 | 46% | 84,000 | 70% | 192,000 | 40% |
| Traceable fixed expenses |
134,400
|
22%
|
62,400
|
52%
|
72,000
|
15%
|
| Office segment margin | 141,600 | 24% |
$21,600
|
18%
|
$120,000
|
25%
|
| Common fixed expenses not traceable to offices | 96,000 | 16% | ||||
| Net operating income |
$45,600
|
8%
| ||||
Refer
to the original data. Assume that sales in Chicago increase by $40,000
next year and that sales in Minneapolis remain unchanged. Assume no
change in fixed costs. Prepare a new segmented income statement for the
company. (Round your percentage
amounts to 2 decimal places. Input all amounts as positive value. Omit
the "$" and "%" signs in your response.)
| Segments | ||||||
| Total Company | Chicago | Minneapolis | ||||
| Amount | % | Amount | % | Amount | % | |
| Sales | $ | $ | $ | |||
| Variable expenses | ||||||
| Contribution margin | ||||||
| Traceable fixed expenses | ||||||
| Office segment margin |
$
|
$
| ||||
| Common fixed expenses not traceable to segments | ||||||
| Net operating income |
$
| |||||
