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please answer all parts. Thanks! Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis (LO6-4, LO6-5) /The following information applies to the questions displayed
please answer all parts. Thanks!
Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis (LO6-4, LO6-5) /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 xpenses not traceable to offices Net operating income Total Company $ 562,500 100.08 303,750 54.0% 258,750 46.0% 126,000 22.4% 132,750 23.69 90.000 16.08 $ 42,750 7.6% office chicago Minneapolis $ 112,500 1008 $ 450,000 100% 33,750 30% 270,000 60% 78,750 70% 180,000 40% 58,500 52% 67,500 15% $ 20,250 188 $ 112,500 25% 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 pointsStep by Step Solution
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