Question: please help with thus multiple step accounting problem, thanks for the help! [The following Information applies to the questions displayed below.) Raner, Harris, & Chan



[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 below: Total Company $ 862,500 100.0% 465,750 54.0% Office Chicago Minneapolis $ 172,500 100% $ 690,000 100% 51.750 30% 414,000 60% Sales Variable expenses Contribution margin Traceable fixed expenses 396,750 193,200 46.0% 22.4% 120,750 89.700 70% 52% 276,000 103,500 40%. 15% Office segment margin 203,550 23.6% $ 31,050 18% $ 172,500 25% Common fixed expenses not traceable to offices 138.000 16.0% Net operating income $ 65,550 76% Required: 1-a. Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole dollar amount.) Break-even point in dollar sales 1-b. 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 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? Greater than Less than Equal to 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. Refer to the original data. 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 percentage answers to 1 decimal place (.e.1234 should be entered as 12.3)) Total Company Amount % Chicago Amount Segments Minneapolis Amount : % %
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