Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis (L07-4, L07-5) (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: 508 Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income 400 Total Company $ 450,000 1008 225,000 225,000 501 126,000 288 99,000 228 63,000 140 $ 36,000 88 office Chicago Minneapolis $ 150,000 1001 $ 300,000 1008 45,000 180,000 608 105,000 700 120,000 78,000 528 48,000 161 $ 27,000 180 72,000 245 Exercise 7-16 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? Exercise 7-16 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. Show less A Reg 1A Reg 1B Req 1C Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places.) Break-even point in dollar sales (Reg 1 Reg 18 > Exercise 7-16 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. Show less Req 1A Reg 1B Reg 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.) Break-Even Point Chicago office Minneapolis office Exercise 7-16 Part 1 3 Required: 1-a. Compute the companywide break-even point in dollar sales. 1-6. 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. es Show less Req 1A Reg 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 Oless than OEqual to
