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 officesone 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 $ 484,000 100% 240,300 50% 243,700 50% 137,560 28% 106,140 22% 67,760 14% $ 38,380 8% Office Chicago Minneapolis $ 167,000 100% $ 317,000 10 50, 100 30% 190,200 6 116,900 70% 126,800 4 86,840 52% 50,720 1 $ 30,060 18% $ 76,080 2 Exercise 6-16 Part 1 (Algo) Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] 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. Show less A 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 number.) Break-even point in dollar sales Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone 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 $ 484,000 100% 240,300 50% 243,700 50% 137,560 28% 106,140 22% 67,760 14% 38,380 8% Office Chicago Minneapolis $ 167,000 100% $ 317,000 10 50,100 30% 190,200 6 116,900 70% 126,800 4 86,840 52% 50,720 1 $ 30,060 18% $ 76,080 2 Exercise 6-16 Part 1 (Algo) Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] 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. Show less Reg 1A Reg 1B Reg 1c 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 Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone 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 $ 484,000 100% 240,300 50% 243,700 50% 137,560 28% 106,140 22% 67,760 14% $ 38,380 8% Office Chicago Minneapolis $ 167,000 100% $ 317,000 10 50,100 30% 190,200 6 116,900 70% 126,800 4 86,840 52% 50,720 1 $ 30,060 18% $ 76,080 2 Exercise 6-16 Part 1 (Algo) Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] 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. Show less Reg 1A Reg 1B Reg 10 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 O Equal to
