Required information [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 secent margin Connon fixed expenses not traceable to offices Net operating income Total Company $ 480,000 100% 247,000 sex 236,000 SOR 130,400 28% 105,600 22% 68,500 14% $ 37,100 office Chicago Minneapolis $ 166,500 100% $316,500 1% 56,000 30% 189,900 60% 110,500 20 126,600 40% 80,200 52% 50,640 16% $ 30,300 18% $ 75,960 24% 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. Is the companywide break even point greater than, less than or equal to the sum of the Chicago and Minneapolis break even points? Required information 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 Total Company $ 483,000 100% 247,600 Sex 236,000 50% 130,400 28% 105,600 223 68,500 142 $ 37,100 8% Office Chicago Minneapolis $ 166,500 100% $ 316,500 13 56,000 30% 189,900 60% 110,500 7ex 126,600 40% 80,200 52% 50,640 16% $ 30,300 18% $ 75,96 24% 2. By how much would the company's net operating income increabe if Minneapolis increased its sales by $80,500 per year? Assume no change in cost behavior patterns. Required information [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: 50% Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 483,000 100% 247,000 236,000 50% 130,400 28% 105,600 22% 68,500 14% $ 37,100 8% Office Chicago Minneapolis $ 166,500 100% $ 316,500 1% 56,000 30% 189,900 60% 110,500 70% 126,600 40% 80, 200 52% 50,640 16% $ 30,300 18% $ 75,960 24% 3. Assume that sales in Chicago increase by $55,500 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 (.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar))
