! Required information Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] [The following information applies to the questions displayed below.] 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 company's most recent year is given: Office Sales Variable expenses Total Company $1,050,000 100.0% 567,000 54.0% Chicago Minneapolis $210,000 100% $840,000 100% 63,000 30% 504,000 60% Contribution margin 483,000 46.0% 147,000 70% 336,000 40% Traceable fixed expenses 235,200 22.4% 109,200 52% 126,000 15 % Office segment margin 247,800 23.6% $ 37,800 18% $ 210,000 25% Common fixed expenses not traceable to offices Net operating income 168,000 16.0% $ 79,800 7.6% Exercise 6-16 Part 1 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? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answers to the nearest whole dollar amount.) Break-even point in dollar sales < Req 1A Req 1B > ! Required information Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] [The following information applies to the questions displayed below.] 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: Office Total Company Chicago Minneapolis Sales $1,050,000 Variable expenses 567,000 100.0% 54.0% $210,000 100% $ 840,000 100% 63,000 30% 504,000 60% Contribution margin 483,000 46.0 % 147,000 70% 336,000 40% Traceable fixed expenses 235,200 22.4% 109,200 52% 126,000 15% Office segment margin 247,800 23.6% $ 37,800 18 % $ 210,000 25% Common fixed expenses not traceable to offices Net operating income 168,000 16.0 % $ 79,800 7.6% Exercise 6-16 Part 1 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? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C 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 Break-even Point < Req 1A Req 1C > ! Required information Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] [The following information applies to the questions displayed below.] 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: Office Minneapolis Total Company Chicago Sales $1,050,000 Variable expenses Contribution margin 567,000 100.0% 54.0% 483,000 46.0% $ 210,000 63,000 147,000 100% $840,000 100% 30% 504,000 60 70% Traceable fixed expenses 235,200 22.4% 109,200 52% 336,000 126,000 40% 15 % Office segment margin 247,800 23.6 %/ $ 37,800 18% $ 210,000 25% Common fixed expenses not traceable to offices Net operating income 168,000 16.0% $ 79,800 7.6 % Exercise 6-16 Part 1 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? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C 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 OEqual to < Req 1B Req 1C >