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Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...

Question

Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...

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 $ 487,500 100.0 % $ 97,500 100 % $ 390,000 100 %
Variable expenses 263,250 54.0 % 29,250 30 % 234,000 60 %
Contribution margin 224,250 46.0 % 68,250 70 % 156,000 40 %
Traceable fixed expenses 109,200 22.4 % 50,700 52 % 58,500 15 %
Office segment margin 115,050 23.6 % $ 17,550 18 % $ 97,500 25 %
Common fixed expenses not traceable to offices 78,000 16.0 %
Net operating income $ 37,050 7.6 %

Exercise 4-16 (Algo) Part 1

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?

Answers

Aw:06) Dollar Sales for company to Break evrens = Traceable frixed Expenses t common foveol En Denses .. Overall em Ratio $1If you have any query ask in comment section. If you like the answer plz rate. Thanks


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