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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 Sales Variable expenses Contribution margin Teaceable fixed expenses oftice soient sargin Common fixed expenses not traceable to offices Het operating income Total Company $ 712,500 180.0% 384,750 54. OX 327,250 46.6% 159.500 22.45 165,150 23.6% 114 000 16.0% $54.150 7.6% Office Chicago Minneapolis $ 142,500 100% $570,000 100% 42,750 30% 342,000 60% 99,750 70% 228,000 40% 74,100 52 85,500 15% $ 25,650 18% $ 142,500 25% Required: 1-3 Compute the companywide break even point in dollar sales. 16. Compute the break even point for the Chicago office and for the Minneapolis office 1- Is the companywide break even point greater than less than or equal to the sum of the Chicago and Minneapolis break even points
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