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2. By how much would the companys net operating income increase if Minneapolis increased its sales by $75,000 per year? Assume no change in cost

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By how much would the companys net operating income increase if Minneapolis increased its sales by $75,000 per year? Assume no change in cost behavior patterns.

Net operating income increse:

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The following information applies to the guestions disoloyed belowj Raner, Harris. & Chen is e consulting firm that specielizes in information systems for medical and dental clinics. The firm has two offices-one in Chicogo and one in Minneapolis. The firm classifies the cirect costs of consulting job as variable costs. A contribution format segmented income statement for the company's most recent year is given below: Office Total Company Chicago Minneapolis 450.000 00% 150.000 00% 300.000 Sales Variable expenses 225,000 50% 45.000 30% 80.000 60% Contribution margin 225.000 05.000 20.000 Traceable fixed expenses 126.000 28% 78,000 52% 48.000 16%. 99.000 22% 27.000 18% 72.000 24% Office segment margin Common fixed expenses not traceable to offices 63.000 14% s 36.000 8% Net operating income

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