5-7
Required information [The following information applies to the questions displayed below] Raner, Harris and 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: Required: a. Compute the companywide break-even point in dollar sales. b. Compute the break-even point for the Chicago office and for the Minneapolis office. c. Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even oints? Required information [The following information applies to the questions displayed below] Raner, Harris and 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: 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $78,000 per year? Assume no change in cost behavior patterns. Required information [The following information applies to the questions displayed below] Raner, Harris and 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: Assume that sales in Chicago increase by $52,000 next year and that sales in Minneapolis remain unchanged, Assume no change fixed costs. Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers 01 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.))