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:

							Office
	Total Company						Chicago						Minneapolis
Sales	$	474,000		100	%		$	162,000		100	%		$	312,000		1	%
Variable expenses		241,000		50	%			53,000		30	%			187,200		60	%
Contribution margin		233,000		50	%			109,000		70	%			124,800		40	%
Traceable fixed expenses		129,200		28	%			79,600		52	%			49,920		16	%
Office segment margin		103,800		22	%		$	29,400		18	%		$	74,880		24	%
Common fixed expenses not traceable to offices		67,000		14	%
Net operating income	$	36,800		8	%

rev: 06_09_2020_QC_CS-215744

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.

2. By how much would the companys net operating income increase if Minneapolis increased its sales by $79,000 per year? Assume no change in cost behavior patterns.

Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole number.) Break-even point in dollar sales Compute the break-even point for the Chicago office and for the Minneapolis office. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole number.) Break-even Point Chicago office Minneapolis office 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $79,000 per year? Assume no change in cost behavior patterns. Net operating income increase