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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: Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Conmon fixed expenses not traceable to offices Net operating income Total Company $ 712,500 100.0 384,750 54.0% 327,750 46.09 159,600 22.44 168, 150 23.64 114,000 16.04 $ 54,150 7.6% Office Chicago Minneapolis $ 142,500 100 $570,000 100% 42,750 30% 342,000 60% 99,750 709 228,000 404 74,100 52% 85,500 15% $ 25,650 184 $ 142,500 25 Req 1A Reg 1B Req 1C compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal plages and final answers to the nearest whole dollar amount.) Break-even point in dollar sales Reg 1A Reg LB 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 Reg 1A Reg 1B Reg 10 Is the companywide break-even point greater than, less than or equal to the sum of the Chicago and Minneapolis break-even points? Greater than Less than Equal to 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $71,250 per year? Assume no change in cost behavior patterns. Net operating income increase 3. Assume that sales in Chicago increase by $47,500 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 percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) Segments Total Company Amount % Chicago Amount Minneapolis Amount % % 0 0.0 0 0.0 0 0.0 0 0.01 $ 0 0.0 $ 0 0.0 $ 0 0.01

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