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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 Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices met operating income Total Company * 476,000 100% 236,700 sex 239,300 SOX 134,840 23 1041460 22% 66,640 14 537,620 8% office Chicago Minneapolis $ 163,000 10 $ 313,290 100% 48,900 30% 187,800 60% 114,100 70% 125,200 468 84 760 52% 50,000 16% $ 29,340 18% $ 75,120 24% 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
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