Question

Please help.. these are all together.

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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Office Total Company Chicago Minneapolis $975,000 100.0% $195,000 100# $ 780,000 100% 526,500 54.0% 58,500 08 468,000 608 448,500 46.08 136,500 312,000 408 218,400 22.4% 101,400 117,000 158 230,100 23.64 $ 35, 100 188 $195,000 258 156,000 $ 74,100 16.03 7.68 Required: 1-a. Compute the companywide break-even point in dollar sales. 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 Req 10 Compute the companywide 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 < ROG SA Req 1B >

Answer 1

ica) computation of Break Even Point (BEP) company wide in dollar Sales SAVO 1 BEP Traceable fixed cost + common fired expenses 1 Overall cm ratio 0 00. 0 00) $ 218,400 + 156,000 0.46 2 00) S813.912 - Bobl chicago. BEP segment traceable fired expenses segment cm ratio ) 41014005 $144,857 0.70 215 2 000,2P LED ch minneapolis BEP) $ 117,000 S$ 292,5boo 0.40 3 $97,500x 404 - $34,000 increased contribution margin in minneapolis. 1(C) The sum of the segment BEP is less than the company wide BEP because the company I BEP takes into account common fired expenses. that donot effect the segment bep calculations 897,500x 40% cm ratio = $39,000 increased contribution margin in minneapolis Because the fixed cost in the office and in the company as a whole will not change, the entire $39,000 would result in increased net operating income for the company.

3ca) Particular sales. Variable I expenses. New segment Total company Amount of $1,040,000 100% 544,500 H income statement chicago. minneapolis Amount of Amount % $255,000 100% $780,000 100% 76, 50o. 30% 468,000 60%. contribution margin $495,500 47.67 178,500 701 8 312,000 40% 217. 101,400 39,8 1191000 154. 26.6 ou 77100 30.2 195,000 25. Tráceable 218,400 friedenpenses Olhice segment margin 277, 100 less common $ 156,000 hired expenses Met operating 121,100 income 15 %. tlob o

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