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Required information Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] [The...

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Required information 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: Office Total Company Chicago Minneapolis Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income $1,012,500 100.0% $202,500 100% 30% 70% 52% 18% $810,000 486,000 324,000 121.500 $202,500 100% 546,750 54.0% 60,750 465,750 46.0% 226,800 22.4% 238,950 23.6% $36,450 162,000 16.0% 60 141,750 105,300 40% 15% 25% $76,950 7.6% 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

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