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 Common fixed expenses not traceable to offices Net operating income Total Company $ 463,500 100.000 231.250 50.000 231,750 50.000 129,780 28.000 101,970 22.000 office Chicago Minneapolis $ 154,500 100.000 $ 309,000 100.000 46,350 30.005 185, 400 60.000 108,150 70.000 123,600 40.000 80,340 52.001 49,440 16.000 $ 27,810 18.00 $ 74,160 24.008 64,890 $ 37,080 14.000 8.000 Exercise 6-16 Part 1 (Algo) Working with a Segmented Income Statement; Break-Even Analysis (L06-4, LO6-5] 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? Complete this question by entering your answers in the tabs below. 2 of 3 Required Information Se Exercise 6-16 through Exercise 6-17 (Algo) [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 Traceste fixed expenses office net margin Common fixed expenses not traceable to offices Net operating incon Total Company $46),500 100.000 231,250 50.000 231,750 50.000 129,780 28.601 101,970 22.000 office Chicago Minneapoli $ 154,500 100.000 309,000 100.000 46.350 30.00 105,400 60.000 108,150 70.000 123,600 40.00 10.30 52.000 49,440 16.000 # 27.010 18.00 $ 74,160 24.000 66,830 $37.000 14.000 8.000 nes Exercise 6-16 Part 2 (Algo) Working with a Segmented Income Statement: Break-Even Analysis (L06-4, LO6-5) 2. By how much would the company's net operating income increase if Minneapolis Increased its sales by $77,250 per year? Assume no change in cost behavior patterns Net operating income increase
