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please show the calculation and and answers clearly. Question 2: (25 points) Raner, Harris & Chan is a consulting firm that specializes in information systems
please show the calculation and and answers clearly.
Question 2: (25 points) 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: Office Total Company Chicago Minneapolis 100% $480,000 0000 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margirn Common fixed expenses not traceable to offices Net operating income $600,000 100.0% SI 20,000 324,000 54.0% 36,000 3000 288,000 6090 276,000 46.0% 84,000 70% 192,000 40% 134,400 22.4% 62,400 52% 72,000 15% 141,600 23.6% $21,600 18% $120,000 25% 96.000 16.0% $45,600 7.6% Required: 1. a) Compu te the companywide break-even point in dollar sales. (5 points) b) Compute the break-even point for the Chica c) Is the companywi go office and for the Minneapolis office. (5 points) ide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even points? (5 points) would the company's net operating income increase if Minneapolis increased its comp 2. By how much S56.250 per year? Assume no change in cost behavior patterns (5 points) sales by S56.250 per year? Assum Assume that sales company. (5 points) in Chicago increase by $40,000 next year and that sales in Minneapolis remain o change in fixed costs. Prepare a new segmented income statement for the increa 3Step by Step Solution
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