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! Required information [The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that specializes in information systems
! Required information [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 $1,125,000 100.0% $225,000 100 $ 900,000 100% Variable expenses 607,500 54.0 67,500 30% 540,000 685 Contribution margin 517,500 46.89 157,500 709 360,000 40 Traceable fixed expenses 252,000 22.44 117,000 524 135,000 154 office segment margin 265,500 23.6 $ 40,500 189 $ 225,000 259 Common fixed expenses not traceable to offices 180,000 16.09 Net operating income $ 85,500 7.6% 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. Reg 1A Reg 1B Req 1C 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.)
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