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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 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 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 below: Office Total Company Chicago 36,000 84,000 70% Minneapolis Sales $ 600,000 100.0% $120,000 100% $480,000 100% 288,000 60% Variable expenses 324,000 54.0% 30% Contribution margin 276,000 46.0% 134,400 22.4% 192,000 40% 72,000 15% Traceable fixed expenses Office segment margin Common fixed expenses not 62,400 52% 141,600 23.6% $ 21,600 18% $120,000 25% traceable to offices 96,000 16.0% Net operating income $ 45,600 76% 75% value: 0.71 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
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