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Required information [The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that specializes in information systems for

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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: office Total Company Chicago Minneapolis Sales $ 517,500 100.000 $ 172,500 100.00 $ 345,000 100.00 Variable expenses 258,750 50.00% 51,750 30.00% 207,000 60.00% Contribution margin 258,750 50.00 120, 750 70.00% 138,000 40.00 Traceable fixed expenses 144,900 28.00 89,700 52.00% 55,200 16.00% office segment margin 113,850 22.ee $ 31,050 18.09 $ 82,800 24.00% Common ixed expenses not traceable to offices 72,450 14.004 Net operating income $ 41,400 8.009 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 company's net operating income increase if Minneapolis increased its sales by $86,250 per year? Assume no change in cost behavior patterns. Net operating income increase 3. Assume that sales in Chicago increase by $57,500 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.)) Segments Total Company Minneapolis Chicago Amount % % % Amount Amount 0 0.0 0 0.0 0.0 0 0 0 0 0.0 0.05 0.0 s s 0 0.0

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