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Total Company $ 450,000 100% 225,000 50% Sales Variable expenses Office Minneapolis 100% $ 300,000 100% 30% 180,000 60% Chicago $ 150,000 45,000 Contribution margin
Total Company $ 450,000 100% 225,000 50% Sales Variable expenses Office Minneapolis 100% $ 300,000 100% 30% 180,000 60% Chicago $ 150,000 45,000 Contribution margin Traceable fixed expenses 225,000 126,000 50% 28% 105,000 78,000 70% 52% 120,000 48,000 40% 16% Office segment margin 99,000 22% $ 27,000 18% $ 72,000 24% Common fixed expenses not traceable to offices 63,000 14% Net operating income $ 36,000 8% value: 14.28 points Required: 1-a. Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places.) 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
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