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14 Required information Part 2 of 4 SB Exercise 6-16 through Exercise 6-17 (Algo) {The following information applies to the questions displayed below) Raner, Harris
14 Required information Part 2 of 4 SB Exercise 6-16 through Exercise 6-17 (Algo) {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 officesone 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 1.19 points eBook Total Company $ 482,000 100% 239,400 50% 242,600 50% 136,880 28% 105,720 22% 67,480 14% $ 38,240 8% Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Cormon fixed expenses not traceable to offices Net operating income Office Chicago Minneapolis $ 166,000 100% $ 316,000 100% 49,800 30% 189,600 60% 116,200 70% 126,400 40% 86,320 52% 50,560 16% 29,880 18% $ 75,840 24% Print C References Exercise 6-16 Part 2 (Algo) Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO65] 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $83,000 per year? Assume no change in cost behavior patterns. Net operating income increase $ 38,240
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