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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

Total Company Chicago Minneapolis Sales $ 900,000 100.0 % $ 180,000 100 % $ 720,000 100 % Variable expenses 486,000 54.0 % 54,000 30 % 432,000 60 % Contribution margin 414,000 46.0 % 126,000 70 % 288,000 40 % Traceable fixed expenses 201,600 22.4 % 93,600 52 % 108,000 15 % Office segment margin 212,400 23.6 % $ 32,400 18 % $ 180,000 25 % Common fixed expenses not

traceable to offices 144,000 16.0 % Net operating income $ 68,400 7.6 %