By how much would the company?s net operating income increase if Minneapolis increased its sales by $56,250 per year? Assume no change in cost behavior patterns.

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 below: Office Minneapolis Total Company 303,750 54.0% 258,750 46.0% Chicago $562,500 100.0% $112,500 100% $450,000 100% 33,750 30% 270,000 60% Sales Variable expenses Contribution margin 78,750 70% 180,000 40% 67,500 15% Traceable fixed expenses Office segment margin Common fixed expenses not 126,000 22.4% 58,500 52% 132,750 23.6% $ 20,250 18% $112,500 25% traceable to offices 90,000 16.0% Net operating income $ 42,750 7.6%