[The following information applies to the questions displayed below.) Raner, Harris & Chan is a...
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[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 Total Company $ 450,000 1008 225,000 500 225,000 501 126,000 286 99,000 224 63,000 148 $ 36,000 86 Office Chicago Minneapoli $ 150,000 1008 300.000 1004 45.000 300 180.000 601 105,000 700 120,000 408 70,000 520 48,000 16 $ 27,000 183 $ 72.000 240 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
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