Required information [The following information applies to the questions displayed below.) Raner, Harris and 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 Req 1A Total Company Req 18 $ 468,000 234,000 234,000 131,040- 102,960 Reg 1C 65,520 $ 37,440 100.00% 50.00% 50.00% 28.00% 22.00% Complete this question by entering your answers in the tabs below. 14.00% 8.00% Office 100.00% $ 312,000 30.00% Chicago $ 156,000 46,800 109, 200 81,120 $ 28,080 70.00% 52.00% 18.00% 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? Minneapolis 187,200 124,800 49,920 $ 74,880 100.00% 60.00% 40.00% 16.00% 24.00% Show less A
Required information [The following information applies to the questions displayed below.) Raner, Harris and 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 Req 1A Total Company Req 18 $ 468,000 234,000 234,000 131,040- 102,960 Reg 1C 65,520 $ 37,440 100.00% 50.00% 50.00% 28.00% 22.00% Complete this question by entering your answers in the tabs below. 14.00% 8.00% Office 100.00% $ 312,000 30.00% Chicago $ 156,000 46,800 109, 200 81,120 $ 28,080 70.00% 52.00% 18.00% 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? Minneapolis 187,200 124,800 49,920 $ 74,880 100.00% 60.00% 40.00% 16.00% 24.00% Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:Required information
[The following information applies to the questions displayed below.)
Raner, Harris and 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
Req 1A
Total Company
Req 18
$ 468,000
234,000
Reg 1C
234,000
131,040
102,960
65,520
$ 37,440
100.00%
50.00%
50.00%
28.00%
22.00%
Complete this question by entering your answers in the tabs below.
14.00%
8.00%
Chicago
$ 156,000
46,800
109, 200
81,120
$ 28,080
Office
100.00%
30.00%
Minneapolis
$ 312,000
187,200
70.00%
52.00%
124,800
49,920
18.00% $ 74,880
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?
100.00%
60.00%
Show less A
40.00%
16.00%
24.00%
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