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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
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?
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 lobs as variable costs. A contribution format segmented Income statement for the company's most recent year is given: 5252500 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 525,000 100.00 283 500 54.00 241,500 46.08 117,600 22.48 123,900 23.68 84,000 16.08 $ 39,900 7.66 Office Chicago Minneapolis $ 105,000 1001 $ 420,000 1008 31,500 301 252,000 608 73,500 701 168,000 40% 54,600 526 63,000 158 $ 18,900 186 $ 105,000 258 Exercise 6-16 Part 1 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. Reg 1A Req 1B Req 1C Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answers to the nearest whole dollar amount.) Break-even point in dollar sales Reg 18 > y your answers in the tabs below. Req 1A Reg 13 Reg 10 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 ( Req1A Reg 10 > Reg 1A Req 24 Req 1B Req 18 Reg 10 Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break- even points? O Greater than OLess than Equal to
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?
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