Business
Business, 01.11.2019 01:31, cravens511peeelg

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 below: office total company chicago minneapolissales $ 450,000 100 % $ 150,000 100 % $ 300,000 100 %variable expenses 225,000 50 % 45,000 30 % 180,000 60 %contribution margin 225,000 50 % 105,000 70 % 120,000 40 %traceable fixed expenses 126,000 28 % 78,000 52 % 48,000 16 %office segment margin 99,000 22 % $ 27,000 18 % $ 72,000 24 %common fixed expenses nottraceable to offices 63,000 14 % net operating income $ 36,000 8 % required: 1-a. compute the companywide break-even point in dollar sales. (round "cm ratio" to 2 decimal places.)1-b. compute the break-even point for the chicago office and for the minneapolis office. (round "cm ratio" to 2 decimal places and final answers to the nearest whole dollar amount.)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? greater thanless thanequal tocheck my workreferencesebook & resources3.value: 4.00 points2. by how much would the company�s net operating income increase if minneapolis increased its sales by $75,000 per year? assume no change in cost behavior patterns. check my workreferencesebook & resources4. value: 4.00 points3. refer to the original data. assume that sales in chicago increase by $50,000 next year and that sales in minneapolis remain unchanged. assume no change in fixed costs. a. prepare a new segmented income statement for the company. (round your percentage answers to 1 decimal place (i. e .1234 should be entered as 12.3))

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