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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 for
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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 600,000 100.0% 324,000 54.0% 276,000 46.0% 134,400 22.4% 141,600 23 96,000 16.0% $ 45, 600 7.6% Office Chicago Minneapolis $ 120,000 100% $ 480,000 100% 36,000 30% 288,000 60% 84,000 70% 192, UUD 192,000 40% 62,400 527 72,000 15% $ 21,600 18% $ 120,000 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
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