Req 1A Req 1B Reg 1c Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even points? OGreater than OLess than OEqual to Raner, Harris and 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 company's most recent year is given: Office Total Company Chicago Minneapolis Sales 35 463, 500 100% $ 154, 500 100% $ 309, 000 100% Variable expenses 231,758 58% 46,358 38% 185,488 68% Contribution margin 231,758 58% 188,158 78% 123,688 48% Traceable fixed expenses 129,788 28% 88,348 52% 49,448 16% Office segment margin 181,978 22% $ 27,818 18% $ 74,168 24% Common fixed expenses not traceable to offices 64,898 14% Net operating income $ 37,888 8% 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $77,250 per year? Assume no change in cost behavior patterns. 3. Assume that sales in Chicago increase by $51,500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. a. Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to 1 decimal place (Le. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.\" Raner, Harris and 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 company's most recent year is given: Office Total Company Chicago Minneapolis Sales 5 463,500 100% $ 154,500 100% $ 309, 000 100% Variable expenses 231,758 58% 46,358 38% 185,488 68% Contribution margin 231,758 58% 188,158 78% 123,688 48% Traceable fixed expenses 129,788 28% 88,348 52% 49,448 16% Office segment margin 181,978 22% $ 27,818 18% $ 74,168 24% Common fixed expenses not traceable to offices 64,898 14% Net operating income $ 37,888 8% Assume that Minneapolis' sales by major market are: Market Minneapolis Medical Dental Sales $ 309,000 100% $ 206, 000 100% $ 103,"?! 100% Variable expenses 185,488 68% 131,848 64% 53,568 52% Contribution margin 123,688 48% 74,168 36% 49,448 48% Traceable fixed expenses 33,998 11% 12,368 6% 21,638 21% Office segment margin 89,618 29% $ 51,833 39% $ 27,813 27% Common fixed expenses not traceable to offices 15,458 5 % Net operating income $ 74,168 24 % The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $5,150. Marketing studies indicate that such a campaign would increase sales in the Medical market by $41,200 or increase sales in the Dental market by $36,050. Required: 1. How much would the company's profits increase (decrease) ifit implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which ofthe markets would you recommend that the company focus its advertising campaign? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much would the company's prots increase (decrease) if it implemented the advertising campaign in the Medical Market? The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $5,150. Marketing studies indicate that such a campaign would increase sales in the Medical market by $41,200 or increase sales in the Dental market by $36,050. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 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? Complete this question by entering your answers in the tabs below. Requiredl I Required2 I Required3 How much would the company's prots increase (decrease) if it implemented the advertising campaign in the Dental Market? The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $5,150. Marketing studies indicate that such a campaign would increase sales in the Medical market by $41,200 or increase sales in the Dental market by $36,050. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 In which of the markets would you recommend that the company focus its advertising campaign? Kristen Lu purchased a used automobile for $29,000 at the beginning of last year and incurred the following operating costs: Depreciation ($29,600 a 5 years) $ 5,806 Insurance $ 3,006 Garage rent $ 1,600 Automobile tax and license $ 800 Variable operating cost $ 0.14 per mile The variable operating cost consists ofgasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $5,800. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 28,000 miles last year. Compute the average cost per mile of owning and operating the car. {Round your answers to 2 decimal places.) Average xed cost per mile Variable operating cost per mile Average cost per mile $ 0.00 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs above are relevant in this decision? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Variable operating costs a Depreciation Automobile tax License costs Insurance costs Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 9.00 $ 32.00 Variable expenses per unit $ 2.70 $ 12.00 Traceable fixed expenses per year $ 136, 000 $ 37, 000 Last year the company produced and sold 35,000 units of Weedban and 23,500 units of Greengrow. Its annual common fixed expenses are $102,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Weedban Company Greengrow 0 0 0 0 $ 0 $ 0 $ 0Required information [The following information applies to the questions displayed below.] 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: office Total Company Chicago Minneapolis Sales $ 463, 500 100% $ 154, 500 100% $ 309, 000 100% Variable expenses 231, 750 50% 46, 350 30% 185, 400 60% Contribution margin 231, 750 50% 108, 150 70% 123, 600 40% Traceable fixed expenses 129, 780 28% 80, 340 52% 49 , 440 16% Office segment margin 101,970 22% $ 27, 810 18% $ 74, 160 24% Common fixed expenses not traceable to offices 64, 890 14% Net operating income $ 37, 080 8% 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?Req 1A Req 1B Req 1C 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 Req 1A Req 1B Req 1C 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