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: Total Company $ 637,500 100.0% 344,250 54.07 293, 250 46.08 142,800 22.4% Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income office Chicago Minneapolis $ 127,500 100% $ 510,000 100% 38,250 30% 306,000 60% 89,250 70% 204,000 40% 66,300 52% 76,500 158 $ 22,950 18% $ 127,500 25% 150, 450 23.6% 102,000 16.08 S 48,450 7.6% 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? 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: Total Company $ 637,500 100.00 344,250 54.08 293, 250 46.00 142,800 22.4% Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income office Chicago Minneapolis $ 127,500 100% $ 510,000 1008 38,250 308 306,000 608 89,250 70% 204,000 40% 66,300 528 76,500 15% $ 22,950 188 $ 127,500 258 150, 450 23.6% F 16.07 102,000 $ 48,450 7.6% 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $63,750 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: Total Company $ 637,500 100.0% 344,250 54.08 293, 250 46.0% 142,800 22.47 Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income office Chicago Minneapolis $ 127,500 1008 $ 510,000 1008 38,250 30% 306,000 60% 89,250 70% 204,000 40% 66,300 523 76,500 158 $ 22,950 188 $ 127,500 25% 150, 450 23.6% 102,000 16.08 $ 48,450 7.68 3. Assume that sales in Chicago increase by $42,500 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 (l.e. 0.1234 should be entered as 12.3).) Segments Total Company Chicago Minneapolis Amount % Amount % Amount %
