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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
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 Office Total Company 425,250 54.0% 362,250 46.0% Chicago Minneapolls Sales $ 787,500 100.0% $157,500 100% $630,000 100% 47,250 30% 378,000 60% Varlable expenses Contribution margin 110,250 70% 252,000 40% 15% Traceable fixed expenses Office segment margin Common fixed expenses not 176,400 22.4% 81,900 52% 94,500 185,850 23.6% $ 28,350 18% $157,500 25% traceable to offices 126,000 16.0% Net operating Income $ 59,850 76% value 1.00 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 1-b. Compute the break-even point for the Chicago office and for the Minneapolis office. (Round "CM ratio" to 2 decimal places and final answers to the nearest whole dollar amount.) Break-even Point Chicago office Minneapolis office
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