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Required information SB Exercise 6-16 through Exercise 6-17 (Static) [The following information applies to the questions displayed below.] Raner, Harris and Chan is a consulting
Required information SB Exercise 6-16 through Exercise 6-17 (Static) [The following information applies to the questions displayed below.] Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. It 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 below: xercise 6-16 Part 1 (Static) Working with a Segmented Income Statement; Break-Even Analysis [LO6-4 06-5] equired: a. Compute the companywide break-even point in dollar sales. o. Compute the break-even point for the Chicago office and for the Minneapolis office. c. Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even ints? Compute the companywide break-even point in dollar sales. Compute the break-even point for the Chicago office and for the Minneapolis office. Note: Round your final answers to the nearest whole dollar amount. Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even points? Exercise 6-16 Part 2 (Static) Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, -06-5] 2. How much would the company's net operating income increase if Minneapolis increased its sales by $75,000 per year? Assume no hange in cost behavior patterns. Exercise 6-16 Part 3 (Static) Working with a Segmented Income Statement; Break-Even Analysis [LO6LO6-5] 3. Assume sales in Chicago increase by $50,000 next year and sales in Minneapolis and all fixed costs remain unchanged. a. Prepare a new segmented income statement for the company. Note: Round your percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3)
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