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Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago
Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. It 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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Office Total Company Chicago Minneapolis $ 522,000 100.00% $ 174,000 261,000 50.00% 52,200 100.00% 30.00% $ 348,000 100.00% 208,800 60.00% 261,000 50.00% 121,800 70.00% 139,200 40.00% 146, 160 28.00% 90,480 52.00% 55,680 16.00% 114,840 22.00% $ 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-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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Compute the companywide break-even point in dollar sales. Note: Round your final answer to the nearest whole number. Break-even point in dollar sales < Required 1A Required 1B > Show less
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