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 companys most recent year is given below:

Office

Total Company

Chicago

Minneapolis

Sales

$

712,500

100.0

%

$

142,500

100

%

$

570,000

100

%

Variable expenses

384,750

54.0

%

42,750

30

%

342,000

60

%

Contribution margin

327,750

46.0

%

99,750

70

%

228,000

40

%

Traceable fixed expenses

159,600

22.4

%

74,100

52

%

85,500

15

%

Office segment margin

168,150

23.6

%

$

25,650

18

%

$

142,500

25

%

Common fixed expenses not traceable to offices

114,000

16.0

%

Net operating income

$

54,150

7.6

%

1-a.	Compute the companywide break-even point indollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole dollar amount.)

1-b.	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.)

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?
	Greater than Less than Equal to