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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
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 Total Company Chicago Minneapolis Sales $ 526,500 Variable expenses 263,250 100.00% 50.00% 52,650 Contribution margin: 263,250 50.00% 122,850 $ 175,500 100.00% 30.00% 70.00% $ 351,000 100.00% 210,600 60.00% 140,400 40.00% Traceable fixed expenses 147,420 28.00% 91,260 Office segment margin 115,830 22.00% $ 31,590 52.00% 18.00% 56,160 16.00% $ 84,240 24.00% Common fixed expenses not traceable to offices Net operating income. 73,710 $ 42,120 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? Complete this question by entering your answers in the tabs below.
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