Question

Part 1 of 3 Required information 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 7.14 points Skipped Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $450,000 100.0% 243,00 54.0% 207, eee 46.ex 188,880 22.4% 186,200 23.6% Office Chicago Minneapolis $90,000 100% $360,000 100% 27,000 382 216,00 6 63,00 783 144, 48% 46,880 52% 54,800 15% 16,200 18% $90,000 25% 72,000 $ 34,200 16.6% 7.6% References Required: 1-a. Compute the companywide break-even point in dollar sales. 1-6. 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? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 10 Compute the company wide break-even point in dollar sales. (Round "CM ratio to 2 decimal places and final answers to the nearest whole dollar amount.) Break-even point in dollar sales Reg 1B >

Answer 1

	Break Even Sales revenue	Fixed Cost/ Contrbution margin ratio
1-A	Company wide Fixed Cost (100800+72000)	172,800
	Contrbution margin ratio	Contrbution Margin/Sales
	Contrbution margin ratio ( 207000/450000)	46.00%
	Break Even Sales revenue (172800/46%)	$375,652
1-B	Break Even Sales revenue for Chicago
	Contrbution margin ratio (63000/90000)	70.0%
	Break Even Sales revenue for Chicago (46000/70%)	$65,714
	Break Even Sales revenue for Minneapolis
	Contrbution margin ratio (144000/360000)	40.0%
	Break Even Sales revenue for minneapolis (54000/40%)	$135,000
1-C	Sum of Chicago and Minneapolis Break Even	$200,714
	Company wide break even ponit greater than Sum of Chicago and Minneapolis Break Even