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2 of 3 Required information [The following information applies to the questions displayed below) Raner, Harris & Chan is a consulting firm that specializes in
2 of 3 Required information [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 Sales Minneapolis $ 675,000 100.ex $ 135,000 100% $ 540,000 100% Variable expenses 364,500 54. ex 40,500 30% 324,000 60% Contribution margin 310,500 46.0x Traceable fixed expenses 94,500 70% 216,000 40% 151,200 22.4% 70.200 52% 81,000 15% office segment margin 159,300 $ 24,300 $ 135,000 25% Common fixed expenses not traceable to offices 100,000 16.0% Net operating income $ 51,300 7.62 04:34:01 Book rint -rences 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $67,500 per year? Assume no change in cost behavior patterns. Net operating income increase Check my 3. Assume that sales in Chicago increase by $45,000 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 (.e. 0.1234 should be entered as 12.3).) Segments Total Company Chicago Minneapolis Amount % Amount % Amount % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 0 0.0 $ 0 0.0
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