M McGeaw-Hill Connect ) St... . XM Ch6811 Decentralicatio...X oodie--Yahoo tpx Q
ID: 2469320 • Letter: M
Question
M McGeaw-Hill Connect ) St... . XM Ch6811 Decentralicatio...X oodie--Yahoo tpx Questions 10-11 (of 13) 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 below Office Total Company Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not Chicago $637500100% $127,500100% $510,000 100g 344,250 54% 38,250 30% 306,000 60% 293250 46% 89,250 70% 204,000 40% 142,800 22% 66,300 52% 76.500 15% traceable to offices Net operating income 102,000 16% $48,450 $48.4508 8% Ask meExplanation / Answer
Answer :- Requirement 1
Sales increase by $63750 Minneapolis
Sales $ 573750
Less Variable cost $ 344250
Contribution $ 229500
Less Fixed cost $ 76500
Total operating income $ 153000
In percentage = 153000/573750*100=26.67%
Change in net operating income = $ 153000-127500 =$ 25500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.