Question: # 1 (a,b) #2 (on same pic ) #3a please answr all , thanks ! c Raner, Harris & Chan is a consulting firm that





c 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 $ 525,000 100.0% 283,500 54.88 241,500 46.0 117,600 22.45 123,900 23.6% 84,800 16.04 $ 39,900 7.64 Office Chicago Minneapolis $ 105,000 100% $ 420,000 1984 31,500 389 252,000 609 73,500 78% 168,000 404 54,600 524 63,000 155 $ 18,900 18% $ 185,000 25% 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? Req 1A Req 1B Req 1C Compute the companywide break-even point in dollar sales. nearest whole dollar amount.) Break-even point in dollar sales Req 1A Req 1B Req 1c Compute the break-even point for the Chicago final answers to the nearest whole dollar amou Break Even Point Chicago office Minneapolis office 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 incone Total Company $ 525,000 180.84 283,500 54.9% 241,588 46.94 117,680 22.45 123, 900 23.6% B4, Bee 16.84 $ 39,900 7.6 Office Chicago Minneapolis $ 105,000 1084 $ 420,000 100% 31,500 30% 252,000 689 73,500 704 168,000 40 1 54,600 524 63,000 154 $ 18,900 18% $ 105,000 254 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $52,500 per year? Assume no change in cost behavior patterns. Not operating income increase 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 $ 525,000 100.8% 283,500 54.09 241,500 46.0 117,600 22.44 123,980 23.64 84,000 16.04 $ 39,900 7.64 Office Chicago Minneapolis $ 195,000 100% $ 420,000 100% 31,500 30% 252,880 609 73,500 70% 168,000 404 54,600 524 63,888 154 $ 18,900 184 $ 105,000 255 3. Assume that sales in Chicago increase by $35,000 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 (l.e. 0.1234 should be entered as 12.3).) Total Company Amount % Chicago Amount % Segments Minneapolis Amount 0 0.0 0 0.0 0 0.0 0 0.00 $ 0 0.0 $ 0 0.0 $ 0 0.0
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
