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Required information (The following information applies to the questions displayed below. Raner, Harris and Chan is a consulting firm that specializes in information systems for
Required information (The following information applies to the questions displayed below. Raner, Harris and 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 $ 499,500 100.00% 249,750 50.00% 249,750 50.00% 139,860 28.00% 109,890 22.00% Office Chicago Minneapolis $ 166,500 100.00% $ 333,000 100.00% 49,950 30.00% 199,800 60.00% 116,550 70.00% 133,200 40.00% 86,580 52.00% 53,280 16.00% $ 29,970 18.00% $ 79,920 24.00% 69,930 $ 39,960 14.00% 8.00% 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? Req 1A Req 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 number.) Break-even point in dollar sales 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 answer to the nearest whole number.) Break-even Point Chicago office Minneapolis office Req 1A Req 1B Req 10 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 Equal to
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