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6 ! Part 2 of 3 2 points Required Information [The following information applies to the questions displayed below.] Raner, Harris and Chan is
6 ! Part 2 of 3 2 points Required Information [The following information applies to the questions displayed below.] Raner, Harris and 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 Minneapolis Sales $ 540,000 Variable expenses 270,000 100.00% 50.00% $ 180,000 eBook Contribution margin 270,000 50.00% Traceable fixed expenses 151,200 28.00% 54,000 126,000 93,600 100.00% 30.00% $ 360,000 216,000 100.00% 60.00% 70.00% 144,000 40.00% 52.00% 57,600 16.00% Office segment margin 118,800 22.00% $ 32,400 18.00% $ 86,400 24.00% Print Common fixed expenses not traceable to offices 75,600 14.00% Net operating income $ 43,200 8.00% References 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $90,000 per year? Assume no change in cost behavior patterns. Net operating income increase
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