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513 Required information [The following information applies to the questions displayed below.] Raner, Harris & Chan is a consulting firm that specializes in information

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513 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 Dok Sales int Variable expenses Contribution margin cences $ 600,000 324,000 Total Company 100.0% 54.0% Chicago Minneapolis $ 120,000 100% $ 480,000 100% 36,000 30% 288,000 60% Traceable fixed expenses office segment margin 276,000 46.0% 134,400 22.4% 84,000 78% 192,000 40% 62,400 52% 72,000 158 141,600 23.6% $ 21,600 18% $ 120,000 258 Common fixed expenses not traceable to offices Net operating income) 96,000 16.0% $ 45,600 7.6% 2 By how much would the company's net operating income increase if Minneapolis increased its sales by $60,000 per year? Assume no change in cost behavior patterns. mere to search n < Prev 9 5 6 of 6 Next > 99 # hp Check m

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