Solution-Determine and assume no change in fixed costs

Determine and assume no change in fixed costs

Assignment Help Managerial Accounting

Reference no: EM132470814

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:

	Total Company			Office
	Total Company		Chicago		Minneapolis
Sales	$1,012,500	100.0%	$ 202,500	100%	$ 810,000	100%
Variable expenses	546,750	54.0%	60,750	30%	486,000	60%
Contribution margin	465,750	46.0%	141,750	70%	324,000	40%
Traceable fixed expenses	226,800	22.4%	105.300	52%	121,500	15%
Office segment margin	238,950	23.6%	$ 36,450	18%	$ 202,500	25%
Common fixed expenses not traceable to offices	162,000	16.0%
Net operating income	$ 76,950	7.6%

Question 1: Assume that sales in Chicago increase by $67.500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs.

Reference no: EM132470814

Questions Cloud

Determine accounts and produce an income statement : Determine accounts, produce an income statement, statement of owner's equity, and balance sheet for the year ended or at December 31, 20

Difference between artifact and dysrhythmia : What is the difference between artifact and dysrhythmia? How can you reduce artifacts? What are some situations that can occur if artifact is not reduced or eli

Identify possible complications associated : Identify contraindications a nurse would want to know prior to inserting a Nasogastric tube?

Post laparoscopic cholecystectomy : Mr. Jones, a 50-year-old professor, is 5 hours post laparoscopic cholecystectomy.

Determine and assume no change in fixed costs : Assume that sales in Chicago increase by $67.500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs.

Ect or benzodiazepines or antidepressants : The PMHNP knows that immediate treatment for John should include? ECT or Benzodiazepines or Antidepressants.

How many gtts-min are you going to administer : The only IV tubing available at your facility is 10gtt/ml. How many gtts/min are you going to administer?

Contrast the treatment of the patient with cf : Compare and contrast the treatment of the patient with CF to that of patients with asthma, and describe the management of other organ systems that are involved.

Appropriate for ft comprehensive : What type of assessment would be most appropriate for F.T.: comprehensive, focused, or emergency?

User Account

All Pages

Determine and assume no change in fixed costs

Reference no: EM132470814

Reference no: EM132470814

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT