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can someone please answer and explain Required information [The following information applies to the questions displayed below.) Raner. Harris & Chan is a consulting firm
can someone please answer and explain
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 $ 450,000 100% 225,000 50% 225,000 50% 126,000 284 99,000 22 63,000 149 $ 36,000 89 Office Chicago Minneapolis $ 150,000 100% $ 300,000 100% 45,000 309 180,000 604 105,000 78% 120,000 40% 78,000 524 48,000 16% $ 27,000 184 $ 72,000 249 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 Step by Step Solution
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