Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required Information (The following information applies to the questions displayed below] Raner, Harris and Chan is a consulting firm that specializes in Information systems
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: Office Sales Total Company $508,500 Chicago 100.00% $169,500 100.00% Variable expenses 254,250 50,00x 50,850 30.00% Minneapolis $339,000 100.00% 203,400 60.00% Contribution margin 254,250 50.00x 118,650 70.00% 135,600 40.00% Traceable fixed expenses 142,380 28.00% 88,140 52.00 54,240 16.00% Office segment margin 111,870 22.00% $30,510 18.00 $ 81,360 24.00% Common Fixed expenses not traceable to offices 71,190 14.00% Net operating Income $40,680 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? Complete this question by entering your answers in the tabs below. Req 1A Rey 18 Req 1C Show less a Compute the companywide break-even point in dollar sales. (Round your final answer to the nearest whole number.) Break-even point in dollar sales Req 18 > Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 1C Show less A Compute the break-even point for the Chicago office and for the Minneapolis office. (Round your final answer to the nearest whole number:) Break-even Point Chicago office Minneapolis office Complete this question by entering your answers in the tabs below. Req 1A 1 Req 18 Req 1C Show less A 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started