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ALL PART OF 1 QUESTION Required information (The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that
ALL PART OF 1 QUESTION
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 $ 522,000 100.00% 261,000 50.00% 261,000 50.00% 146,160 28.00% 114,840 22.00% Office Chicago Minneapolis $ 174,000 100.00% $ 348,000 100.00% 52,200 30.00% 208,800 60.00% 121,800 70.00% 139,200 40.00% 90,480 52.00% 55, 680 16.00% $ 31,320 18.00% $ 83,520 24.00% 73,080 $ 41,760 14.00% 8.00% Required: 1-a. Compute the companywide break-even point in dollar sales. 1-6. 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. Show less Reg 1A Req 1B Req 10 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 Complete this question by entering your answers in the tabs below. Show less Reg 1A Reg 1B Req 10 Compute the break-even point for the Chicago office and for the Minneapolis office. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole number.) Break-even Point Chicago office Minneapolis office Complete this question by entering your answers in the tabs below. Show less Reg 14 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 toStep by Step Solution
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