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

Raner. Harris. 8. Chan Is a consulting rm that specializes In Information systems for medical and dental clinics. The rm has two oicesone in Chicago and one In Minneapolis. The rm classies the direct costs of consultJng Jobs as variable costs. A contribution format segmented Income statement for the company's most recentyear is given below: Sales Variable expenses Contribution margin Traceable xed expenses Ofce segment margin Common ned expenses not traceabletc- ofces Net operating Income References Section Break I\\I'BIIJE'I sno points Exercise 6-16 Part 1 Required: Oice Total Cmpany [Ileana Mrruieapdis $ 450.000 100% $ 150.000 100% $ 300.000 100% 225.000 50% 45.000 30% 130.000 60% 225.000 50% 105.000 70% 120.000 40% 125.000 23% T3000 52% 43.000 15% 59.000 22% $ 21000 13% $ 22.000 24% 53.000 14% $ 36.000 3% Exercise 646 Working with a Segmented II Analysis [LOB-4. LOB-5| 1a. Compute the companwride hrealceuen point in dollar sales. {Round "CM ratio" to 2 decimal places} 1b. Compute the hrealceuen point for the Chicago ooe and for the Minneapolis oioe. {Round "CM ratio" to 2 decimal places and final answers to the nearest whole dollar amount.) cnmnnm- Minneapolis ooe _ 1-c. Is the company-wide break-eten point greater thanI less thanI or equal to the sum ofthe Chicago and Minneapolis break-eten points? Q Greater than 0 Lessthan 0 Equal to