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 Net operating income Total Company $ 495,000 100 00 247,500 50 00 247,500 50 00 138,600 28 00 108,900 22 00 69,300 14 00 39,600 8 00 Office Chicago Minneapolis $ 165,000 100 00 $ 330,000 100 00 49,500 30 00 198,000 60 00 115,500 70 00 132,000 40 00 85,800 52 00 52,800 16 00 $ 29,700 18 00 $ 79,200 24 00 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

Question

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 Net operating income Total Company $ 495,000 100 00  247,500 50 00  247,500 50 00  138,600 28 00  108,900 22 00  69,300 14 00  39,600 8 00  Office Chicago Minneapolis $ 165,000 100 00  $ 330,000 100 00  49,500 30 00  198,000 60 00  115,500 70 00  132,000 40 00  85,800 52 00  52,800 16 00  $ 29,700 18 00  $ 79,200 24 00  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

Accepted Answer

The Answer is in the image, click to view ...

Question

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

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question