Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

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 Chicago Minneapolis $ 187,500 100% $ 750,000 100% 56,250 30% 450,000 60% Total Company $ 937,500 100.0% 506,250 54.0% Sales Variable expenses Contribution margin Traceable fixed expenses 431,250 210,000 46.0% 22.4% 131,250 97,500 70% 52% 300,000 112,500 40% 15% Office segment margin 221,250 23.6% $ 33,750 18% $ 187,500 25% Common fixed expenses not traceable to offices 150,000 16.0% Net operating Income $ 71,250 7.6% value: 20.00 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 1-5. 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 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? O Greater than Less than O Equal to

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mechanics Of Materials

Authors: Russell C. Hibbeler

11th Edition

0137605528, 9780137605521

Students also viewed these Accounting questions