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	$	482,000		100	%		$	166,000		100	%		$	316,000		100	%
Variable expenses		239,400		50	%			49,800		30	%			189,600		60	%
Contribution margin		242,600		50	%			116,200		70	%			126,400		40	%
Traceable fixed expenses		136,880		28	%			86,320		52	%			50,560		16	%
Office segment margin		105,720		22	%		$	29,880		18	%		$	75,840		24	%
Common fixed expenses not traceable to offices		67,480		14	%
Net operating income	$	38,240		8	%

rev: 06_09_2020_QC_CS-215744, 09_15_2020_QC_CS-220558, 11_04_2020_QC_CS-238526

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?

1-d. By how much would the companys net operating income increase if Minneapolis increased its sales by $83,000 per year? Assume no change in cost behavior patterns.

1-e. Assume that sales in Chicago increase by $58,000 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs.

1-e-2. Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.))