Required information Skip to question 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 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 Total Company Office Chicago Minneapolis Sales $ 490,500 100 00 $ 163,500 100 00 $ 327,000 100 00 Variable expenses 245,250 50 00 49,050 30 00 196,200 60 00 Contribution margin 245,250 50 00 114,450 70 00 130,800 40 00 Traceable fixed expenses 137,340 28 00 85,020 52 00 52,320 16 00 Office segment margin 107,910 22 00 $ 29,430 18 00 $ 78,480 24 00 Common fixed expenses not traceable to offices 68,670 14 00 Net operating income $ 39,240 8 00 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 2 By how much would the companys net operating income increase if Minneapolis increased its sales by $81,750 per year Assume no change in cost behavior patterns 3 Assume that sales in Chicago increase by $54,500 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 (i e 0 1234 should be entered as 12 3 and other answers to the nearest whole dollar ))

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Required information Skip to question [The following information applies to the questions displayed below.] Raner, Harris and Chan is a consulting firm that specializes in

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[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 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:

	Total Company	Office
Chicago	Minneapolis
Sales	$ 490,500	100.00%	$ 163,500	100.00%	$ 327,000	100.00%
Variable expenses	245,250	50.00%	49,050	30.00%	196,200	60.00%
Contribution margin	245,250	50.00%	114,450	70.00%	130,800	40.00%
Traceable fixed expenses	137,340	28.00%	85,020	52.00%	52,320	16.00%
Office segment margin	107,910	22.00%	$ 29,430	18.00%	$ 78,480	24.00%
Common fixed expenses not traceable to offices	68,670	14.00%
Net operating income	$ 39,240	8.00%

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?

2. By how much would the companys net operating income increase if Minneapolis increased its sales by $81,750 per year? Assume no change in cost behavior patterns.

3. Assume that sales in Chicago increase by $54,500 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 (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.))