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IThe following information applies to the questions displayed below Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and
IThe 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 below: Total Company Chicago Minneapolis 637,500 100.0% 127,500 100% 510,000 100% Sales Variable expenses 344,250 54.0% 38,250 30% 306,000 60% Contribution margin 293,250 46.0% 89,250 70% 204,000 40% Traceable fixed expenses 142,800 22.4% 66,300 52% 76,500 15% 150.450 23.6% 22,950 18% 127,500 25% Office segment margin Common fixed expenses not 102,000 16.0% traceable to offices s 48,450 76% Net operating income 3.00 points Required: 1-a. Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole dollar amount.) Break-even point in dollar sales
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