please answer all parts. Thanks! Exercise 6-16 Working with a Segmented Income Statement; Break-Even...

70.2K

Verified Solution

Question

Accounting

imageplease answer all parts. Thanks!

Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis (LO6-4, LO6-5) /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 xpenses not traceable to offices Net operating income Total Company $ 562,500 100.08 303,750 54.0% 258,750 46.0% 126,000 22.4% 132,750 23.69 90.000 16.08 $ 42,750 7.6% office chicago Minneapolis $ 112,500 1008 $ 450,000 100% 33,750 30% 270,000 60% 78,750 70% 180,000 40% 58,500 52% 67,500 15% $ 20,250 188 $ 112,500 25% Exercise 6-16 Part 1 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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students