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6 Part 1 of 4 40 point Required information SB Exercise 6-16 through Exercise 6-17 (Algo) 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 ofrio Total Company Chicago Minneapolis sales $ 535,500 100.000 198,500 100.000 $ 357,000 100.000 Variable expenses 262.750 50.000 53.550 30.000 214,200 60.000 Contribution margin 267, 750 50.000 124,950 142,800 40.000 Teaceable fixed expenses 169.240 28.000 92,020 52.000 57,120 office segment margin 117,010 22.000 $12,130 18.000 $ 85,680 24.001 Common fixed expenses not traceable to offices 74,970 14.000 Net operating income 42,840 8.000 elence 70.000 16.000 $ Exercise 6-16 Part 1 (Algo) Working with a Segmented Income Statement; Break-Even Analysis (L06-4, LO6-5) 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. Show less Reg 1A Reg 1B Reg 1C Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole number.) Break-even point in dollar sales 1A Reg 18 > Exercise 6-16 Part 2 (Algo) Working with a Segmented Income Statement; Break-Even Analysis (L06-4, LO6-5) 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $89,250 per year? Assume no change in cost behavior patterns Net operating income increase Exercise 6-16 Part 3 (Algo) Working with a Segmented Income Statement; Break-Even Analysis (L06-4, LO6-5) 3. Assume that sales in Chicago increase by $59,500 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 Intermediate calculations and percentage answers to 1 decimal place (.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar:)) Total Company Amount % Chicago Amount Segments Minneapolis Amount % % Exercise 6-17 (Algo) Working with a Segmented Income Statement [LO6-4) Assume that Minneapolis' sales by major market are: Minneapolis Sales $ 357.000 100.000 Variable expenses 214,200 60.000 Contribution margin 142,800 40.000 Traceable fixed expenses 39.270 11.00 Market segment margin 103,530 29.000 Connon fixed expenses not traceable to markets 17.850 5.000 ottice segment margin $ 85,680 24.000 Market Medical Dental $ 238,000 100.000 $ 119,000 100.000 152,320 54.000 61,880 52.00 85,680 36.000 57. 120 48.000 14,280 6.000 24.990 21.000 $ 21,400 30.000 $ 32,130 27.000 The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $5.950. Marketing studies indicate that such a campaign would increase sales in the Medical market by $47,600 or increase sales in the Dental market by $41,650, Required: 1. How much would the company's profits increase (decrease) fit implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign