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Please solve all parts and show all work Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis (L07-4, L07-5) [The following information
Please solve all parts and show all work
Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis (L07-4, L07-5) [The following information applies to the questions displayed below) Ranet, 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: office Total Company Chicago Sales Minneapolis $ 675,000 100.00 Variable expenses $ 135,000 1001 $ 540,000 1008 364,500 54.00 40,500 300 324,000 Contribution margin 310,500 46.00 94,500 705 216,000 400 Traceable fixed expenses 151,200 22.40 70,200 81,000 150 ottice segment margin 159,300 23.61 $ 24.300 135,000 250 Common tixed expenses not traceable to offices 108,000 Net operating income $ 51,300 600 520 181 16.00 7.60 Exercise 7-16 Part 1 Required: 1-a. Compute the companywide break-even point in dollar sales 1-5. 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. Red LA Reg 10 Reg 10 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 Reg 1 Req1B > Step by Step Solution
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