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2. By how much would the company's net operating income increase if Minneapolis increased its sales by $71,250 per year? Assume no change in cost
2. By how much would the company's net operating income increase if Minneapolis increased its sales by $71,250 per year? Assume no change in cost behavior patterns. Net operating income increase 3. Assume that sales in Chicago increase by $47,500 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).) Segments Total Company Chicago Minneapolis Amount % Amount % Amount % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 $ 0 0.0 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 officesone 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 Total Company $ 712, 500 100.0% 384, 750 54. 0% 327, 750 46. 0% 159, 600 22. 4% Chicago $ 142,500 42, 750 99,750 74, 100 $ 25, 650 Office Minneapolis 100% $ 570,000 100% 30% 342, 000 60% 70% 228,000 40% 52% 85,500 15% 18% $ 142,500 25% 168, 150 23. 6% Office segment margin Common fixed expenses not traceable to offices 114,000 16.0% Net operating income $ 54, 150 7.6% Required: 1-a. Compute the companywide break-even point in dollar sales. 1-b. Compute the break-even point for the Chicago office and for the Minneapolis office. 1-c. Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even points? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 10 Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole dollar amount.)
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