Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] [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 companys most recent year is given below: Office Total Company Chicago Minneapolis Sales $ 562,500 100.0 % $ 112,500 100 % $ 450,000 100 % Variable expenses 303,750 54.0 % 33,750 30 % 270,000 60 % Contribution margin 258,750 46.0 % 78,750 70 % 180,000 40 % Traceable fixed expenses 126,000 22.4 % 58,500 52 % 67,500 15 % Office segment margin 132,750 23.6 % $ 20,250 18 % $ 112,500 25 % Common fixed expenses not traceable to offices 90,000 16.0 % Net operating income $ 42,750 7.6 % References Section BreakExercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] 1.value: 10.00 pointsRequired information Exercise 6-16 Part 1 Required: 1-a. 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.) 1-b. Compute the break-even point for the Chicago office and for the Minneapolis office. (Round "CM ratio" to 2 decimal places and final answers to the nearest whole dollar amount.) 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 ReferenceseBook & Resources WorksheetExercise 6-16 Part 1 Check my work

2.value: 15.00 pointsRequired information Exercise 6-16 Part 2 2. By how much would the companys net operating income increase if Minneapolis increased its sales by $56,250 per year? Assume no change in cost behavior patterns. ReferenceseBook & Resources WorksheetExercise 6-16 Part 2 Check my work

3.value: 15.00 pointsRequired information Exercise 6-16 Part 3 3. Refer to the original data. Assume that sales in Chicago increase by $37,500 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 .1234 should be entered as 12.3))