Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that specializes in information systems for

image text in transcribedimage text in transcribedimage text in transcribed

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 $1,125,000 100.0% 607,500 54.08 517,500 46.08 252,000 22.48 265,500 23.69 180,000 16.08 85,500 7.68 Office Chicago Minneapolis $ 225,000 100% $ 900,000 100% 67,500 308 540,000 608 157,500 708 360,000 40% 117,000 52% 135,000 15% $ 40,500 189 $225,000 250 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. Reg 1A Reg 1B Reg 1C Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole dollar amount.) Break-even point in dollar sales Compute the break-even point for the Chicago office and for the Minneapolis office. (Round "CM ratio to 2 decimal places and final answers to the nearest whole dollar amount.) Break-Even Point Chicago office Minneapolis office 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Principle 5 Powerful Steps To Align Your Life With The Laws Of Success

Authors: Jane Ann Craig

1st Edition

1732729107, 978-1732729100

More Books

Students also viewed these Accounting questions

Question

15-1 Present a brief history of the American labor movement.

Answered: 1 week ago