apter 4) 0 Saved Help 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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to office Net operating income Total Company $1.030,000 100.00 567,000 54.00 483,000 46.00 225, 200 22.44 247,000 23.68 168,000 16.00 $ 79,800 7.68 office Chicago Minneapolis $ 210,000 1000 $340,000 1001 63,000 305 504.000 501 147,000 709 336.000 404 109.200 528 126.000 158 $ 37,000 181 $ 210.000 250 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $105,000 per year? Assume no change in cost behavior patterns. Net operating income increase Help 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: Sales Variable expenses Contribution margin Traceable fixed expensen office segment margin Cormon fixed expenses not traceable to offices Net operating income Total Company $1,050,000 100.00 567.000 54.09 483,000 46.00 235,200 22.48 242,800 23.61 168,000 16.01 $ 79,800 office Chicago Minneapolis $ 210.000 1000 S 840,000 1008 63,000 307 504,000 603 147,000 700 336,000 403 109,200 52 126,000 153 $ 37,800 188 $ 210,000 258 3. Assume that sales in Chicago increase by $70,000 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).) Chicago Total Company Amount % Segments Minneapolis Amount * Amount