Question
5 ! Part 1 of 3 2 points Required Information [The following Information applies to the questions displayed below.] Raner, Harris and Chan is
5 ! Part 1 of 3 2 points Required Information [The following Information applies to the questions displayed below.] Raner, Harris and 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: Office Total Company Chicago Minneapolis Sales $ 540,000 Variable expenses 270,000 100.00% 50.00% eBook Contribution margin 270,000 50.00% Traceable fixed expenses 151,200 28.00% $ 180,000 54,000 126,000 93,600 100.00% 30.00% $ 360,000 100.00% 216,000 60.00% 70.00% 144,000 40.00% 52.00% 57,600 16.00% Office segment margin 118,800 22.00% $ 32,400 18.00% $ 86,400 24.00% Print Common fixed expenses not traceable to offices 75,600 Net operating income $ 43,200 14.00% 8.00% References 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. Req 1A Req 1B Req 1C Show less Compute the companywide break-even point in dollar sales. (Round your final answer to the nearest whole number.) Break-even point in dollar sales < Req 1A Req 1B > Req 1A Req 1B Req 1C Compute the break-even point for the Chicago office and for the Minneapolis office. (Round your final answer to the nearest whole number.) Chicago office Minneapolis office Break-even Point < Req 1A Req 1C > Req 1A Req 1B Req 1C 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 < Req 1B Req 1C >
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