Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis [LO7-4, L07-5) The folowing 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 Minneapols. The firm classities the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company's most recent year is given: office Total company 243,000 54.08 27 100,800 22.4% Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating incone $450,000 100.0 $90,000 1008 360,000 100 308 216,000 0 144,000 40 46,800 52854,000 158 106,200 23.6 $16,200 18 90,000 25 72,000 16.0 34,200 7.6 Exercise 7-16 Part 1 Required: -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 oftice. 1-C. Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapols break-even points? 2. By how much would the compan year? Assume no change in cost behavior patterns. Increased its sales by $45,000 per y's net operating income increase if Minneapolis incr et operat increase ting income