Ranet, Harris, & Chan is a consulti 6-16 Working with a Segmented Income Statement: Break-Even Analyals ILOA. 1051 Chan is a consulting firm that specializes in information systems for medical and dinics. The firm has two officesone in Chicago and one in Minneapolis. The direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company's most recent year is given below: Office Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin .. Common fixed expenses not traceable to offices Net operating income Total Company $450,000 100% 225,000 225,000 126,000 99,000 63,000 $ 36,000 Chicago $150,000 100% 45,000 30% 105,000 70% 78,000 $ 27,000 18% Minneapoles $300,000 100% 180.000 60% 120,000 40% 48,000 16% $ 72,000 24% Compute the companywide break-even point in dollar sales. Also, compute the break-even point for the Chicago office and for the Minneapolis office is the company wide break en point greater than, less than or equal to the sum of the Chicago and Minneapolis break-even points? Why? wow much would the company's net operating income increase if Minneapolis increased sales by $75,000 per year? Assume no change in cost behavior patterns. ar to the original data. Assume that sales in Chicago increase by $50.000 next year and les in Minneapolis remain unchanged. Assume no change in fixed costs pate a new segmented income statement for the company using the above format Show both amounts and percentages Observe from the income statement from the income statement you have prepared that the contribution margin ratio has remained unchanged at 70% (the same as in the above data but that the in ratis has changed. How do you explain the change in the segment piratio? for Chicago haram