Answer Q2 , thank you

EXERCISE 7-16 Working with a Segmented Income Statement: Break-Even Analysis L07-A, 107- Raner. Harris & Chan is a consulting firm that specializes in information systems for medical and costs of consulting jobs as variable costs. A contribution format segmented income statement for the com clinics. The firm has two offices one in Chicago and one in Minneapolis. The firm classifies the Required: 1. Compute the unit product cost for one bar 2. Prepare an income statement for last year, pany's most recent year is given Office Chicago Minneapolis Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin. Common fixed expenses not traceable to offices Net operating income Total Company $450,000 100% 225,000 50% 225,000 50% 126,000 28% 99,000 22% 63,000 14% 36.000 8% $150,000 45,000 105,000 78,000 $ 27,000 100% 30% 70% 52% 18% $300,000 100% 180,000 60% 120,000 40 48,000 16% $ 72,000 248 Required: 1. Compute the companywide break-even point in dollar. Also, compute the break-even point for the Chicago office and for the Minneapolis office is the conanywide break-even point greater than less than or equal to the sum of the Chicago and Minchrols break-even points? Why? 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $75,000 per year? Assume no change in cost behavior patterns. 3. Refer to the original data. Assume that sales in Chicago increase by $50,000 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. 2. Prepare a new segmented income statement for the company using the above format. Show boch amounts and percentages. b. Observe from the income statement you have prepared that the contribution margin ratio for Chicago has remained unchanged at 70% (the same as in the above data) but that the segment margin ratio has changed. How do you explain the change in the segment margin ratio