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Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 535,500
Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 535,500 100% 267, 750 50x 267,750 50X 149,940 28% 117,810 22% 74,970 14% $ 42,840 8 office Chicago Minneapolis $ 178,500 100% $ 357,000 100% 53,550 30x 214, 200 60% 124,950 70% 142,800 40% 92,820 52% 57, 120 16% $ 32,130 18% $ 85,680 24% required: -a. Compute the companywide break-even point in dollar sales. -b. Compute the break-even point for the Chicago office and for the Minneapolis office. -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. Show less Reg 1A Reg 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 1 Req 1B > 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 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $89.250 per year? Assume no change in cost behavior patterns. Net operating income increase 3. Assume that sales in Chicago increase by $59,500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. a. Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Total Company Amount % Chicago Amount Segments Minneapolis Amount % % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.01$ 0 0.0 $ 0 0.0
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