EXERCISE 6-16 Working with a Segmented Income Statement; Break-Even Analysis LO6-4, LO6-5 Raner, Harris \& Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. It 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 below: Required: 1. Compute the companywide break-even point in dollar sales. Also, compute the break-even point for the Chicago office and for the Minneapolis office. Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even points? Why? 2. 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. 3. Refer to the original data. Assume sales in Chicago increase by $50,000 next year and sales in Minneapolis and all fixed costs remain unchanged. a. Prepare a new segmented income statement for the company using the above format. Show both amounts and percentages. b. Compare the income statement you prepared in requirement 3 a to the original data. Did the Chicago office's contribution margin ratio change? Why? Did its segment margin ratio change? Why