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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: Total Company $1,050,000 100.0% 567,000 54.0% 483,000 46.0% 235, 200 22.4% Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Office Chicago Minneapolis $ 210,000 100% $ 840,000 100% 63,000 30% 504,000 60% 147,000 70% 336,000 40% 109,200 52% 126,000 15% $ 37,800 18% $ 210,000 25% 247,800 168,000 79,800 23.6% 16.0% 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
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