Exercise 5-16 Working with a Segmented Income Statement; Break-Even Analysis [LO5-4, LO5-5] The following informotion 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 varlable costs. A contribution format segmented income statement for the company's most recent year is given below Office Chicago 150,000 45,000 105,000 78.000 27000 Minneapolis 300,000 180.000 120.000 48.000 Total Company 450,000 225,000 225,000 126.000 100 100% 30 % 70 % 52% 100% 60 40 16 % Sales Variable expenses Contribution margin Traceable fixed expenses 50 % 50 % 28% 72,000 18% 24% 99,000 22% Office segment margin Common fixed expenses not traceable to offices 63,000 $ 14% 36.000 8 % Net operating income Exercise 5-16 Part 1 Required: 1-a. Compute the companywide break-even point in dollar sales. Break-even point in dllar sales 1-b. Compute the break-even point in sales dollars for the Chicago office and for the Minneapolis office. Break-even in Dollar Sales Chicago office 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? Greater than Less than Equal to Exercise 5-16 Part 2 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $75,000 per year? Assume no change in cost behavior patterns Net operating income increase Exercise 5-16 Part 3 3. Refer to the original data Assume that sales in Chicago increase by $50,000 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. a. Prepare a new segmented contribution format income statement for the company. (Round your percentage answers to 1 decimal place (i.e.1234 should be entered as 12.3) Segments Total Company Minneapolis Chicago 9% 9% Amount Amount Amount %