Raner. Harris and 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: Exercise 7-16 Part 1 (Static) Working with a Segmented Income Statement; Break-Even Analysis [LO7-4, 075] Required: 1-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 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? Complete this question by entering your answers in the tabs below. Compute the companywide break-even point in dollar sales. Raner, Harris and 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. xercise 7-16 Part 2 (Stotic) Working with a Segmented Income Statement; Break-Even Analysis [LO7-4, 075] By how much would the company's net operating income increase if Minneapolis increased its sales by $75,000 per year? Assume ochange in cost behavior patterns. Raner, Harris and 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: Exercise 7-16 Part 3 (Static) Working with a Segmented Income Statement; Break-Even Analysis [LO7-4, LO7.5] 3. Assume that sales in Chicago increase by $50,000 next year and that sales in Minneapolls 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 ploce (lie. 0.1234 should be entered as 12.3).) Raner, Harris and 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: Exercise 7-17 (Static) Working with a Segmented Income Statement [LO7-4] Assume that Minneapolis' sales by major market are: The company would like to initiate an intensive advertising campaign in one of the two market segments during the next montn. me Campaign would cost $5,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,00 or increase sales in the Dental market by $35,000. 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? Required: 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign
