Required information Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis (L06-4, L06-5) The following information applies to the questions displayed below.) Raner, Harris & 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 Sales Variable expenses Contribution margin Traceable fixed expenses office segment waren Common Fixed expenses not traceabile te offices Het operating income 46 Total Company $750,000 100.0 405,000 sa.ox 345.000 160.000 22:45 177.000 23.65 120,000 16.01 $57,000 Office Minneapolis 100% 5.500,000 TOUR 360,000 7 240,000 0. 158 $ 150,000 Chica $ 150,000 65,000 105.000 78.000 $ 27,000 7.65 Exercise 6-16 Part 1 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. Reg 1A Reg 13 Reg 1C Compute the companywide break even point in dollar sales (Round CM ration to 2 decimal places and answers to the nearest whole dollar amount) Bronk von point in dottersons Reg 1B > Exercise 6-16 Part 1 Required: 1-a. Compute the companywide break-even point in dollar sales 1-5. 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. Reg 1A Red 10 Reg 10 Compute the break even point for the Chicago office and for the Minneapolis office (Round "CM ratio' to 2 decimal places and final answers to the nearest whole dollar amount.) Break-even Point Chicago office Minneapolis office Exercise 6-16 Part 1 Required: 1-a. Compute the companywide break-even point in dollar sales 1-6. 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. Reg 1A Reg 10 Reg1 is the companywide break even point greater than, less than or equal to the sum of the Chicago and Minneapolis break-even points? Grouter than Less than Equal to Reg 1B Required information Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, L06-5) The following information applies to the questions displayed below) Raner, Harris & 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 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Connon fixed expenses not traceable to offices Net operating income ser Total Company $.750.000 100.0% 405,000 54.ex 345,000 46. 168,000 22.4% 177.000 23.6 120,000 16.0% $57,000 7.6% Office Chicago Minneapolis $ 150,000 100% $ 600,000 100% 45,000 30% 360,000 105,000 70% 240,000 40% 78,000 52 90,000 15% $ 27,000 $ 150,000 25% Exercise 6-16 Part 2 2. By how much would the company's net operating income increase il Minneapolis increased its sales by $75,000 per year? Assume no change in cost behavior patterns Not operating income incrono
