Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information applies to the questions displayed below.) Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and
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 fin 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 below: Office Chicago Minneapolis $ 120,000 100% $ 480,000 100% 36,000 30% 288,000 60% Total Company $ 600,000 100.0% 324,000 54.0% Sales Variable expenses 40% Contribution margin Traceable fixed expenses 276,000 134,400 46.0% 22.4% 70% 84,000 62.400 192.000 72.000 52% 15% Office segment margin 141,600 23.6% $ 21,600 18% $ 120,000 25% Common fixed expenses not traceable to offices 96,000 16.0% Net operating income $ 45,600 7.6% 2. value: 20.00 points Required: 1-a. 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 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.) Break-even Point Chicago office 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? Greater than Less than Equal to
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started