Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone 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 companys most recent year is given:

Office

Total Company

Chicago

Minneapolis

Sales

$

450,000

100

%

$

150,000

100

%

$

300,000

100

%

Variable expenses

225,000

50

%

45,000

30

%

180,000

60

%

Contribution margin

225,000

50

%

105,000

70

%

120,000

40

%

Traceable fixed expenses

126,000

28

%

78,000

52

%

48,000

16

%

Office segment margin

99,000

22

%

$

27,000

18

%

$

72,000

24

%

Common fixed expenses not traceable to offices

63,000

14

%

Net operating income

$

36,000

8

%

Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places.)

Break-even point in dollar sales =

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.)

Chicago office
Minneapolis office

Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even points?

	Greater than Less than Equal to