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 Common fixed expenses not traceable to offices Net operating income Total Company $ 486,000 100% 243,000 50% 243,000 50% 136,080 28% 106,920 22% 68,040 14% $ 38,880 8% Office Chicago Minneapolis $ 168,000 100% $ 318,000 100% 50,400 30% 190,800 60% 117,600 70% 127,200 40% 87,360 52% 50,880 16% $ 30,240 18% $ 76,320 24% 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? Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole number.) Break-even point in dollar sales Break-even Point Chicago office Minneapolis office 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $81,000 per year? Assume no change in cost behavior patterns. Net operating income increase 3. Assume that sales in Chicago increase by $56,000 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 intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Segments Total Company Chicago Minneapolis Amount % Amount % Amount % Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income 100% 52% 48% l'arKEL Medical Dental $ 224,000 100% $ 124,000 143,360 64% 64,480 80,640 36% 59,520 13,440 6% 26,040 $ 67,200 30% $ 33,480 Minneapolis $ 318,000 100% 190,800 60% 127,200 40% 50,880 16% 76,320 24% 15,000 5 % $ 61,320 19 % 21% 27% The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. Th campaign would cost $11,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $52,000 or increase sales in the Dental market by $53,000. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? Company's profits by How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? Company's profits by