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[The following information applies to the questions displayed below.] Raner, Harris & Chan is a consulting firm that specializes in information systems for medical
[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: Office Total Company Chicago Minneapolis Sales $ 600,000 Variable expenses 324,000 Contribution margin 276,000 100.0% 54.0% 46.0% $ 120,000 36,000 100% 30% $ 480,000 100% 288,000 60% 84,000 70% 192,000 40% Traceable fixed expenses 134,400 22.4% 62,400 528 72,000 15% Office segment margin Common fixed expenses not traceable to offices Net operating income 141,600 96,000 23.6% $ 21,600 188 $ 120,000 25% 16.08 $ 45,600 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? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answers to the nearest whole dollar amount.) Break-even point in dollar sales
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