es Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. It 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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company Net operating income increase $ 517,500 258,750 258,750 144,900 113,850 72,450 $ 41,400 100.00% 50.00% 50.00% 28.00% 22.00% 14.00% 8.00% Chicago $ 172,500 51,750 120,750 89,700 $ 31,050 Office 100.00% 30.00% 70.00% 52.00% 18.00% Minneapolis $ 345,000 207,000 138,000 55,200 $ 82,800 100.00% 60.00% 40.00% 16.00% 24.00% 2. How much would the company's net operating income increase if Minneapolis increased its sales by $86,250 per year? Assume no change in cost behavior patterns.

Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices - one in Chicago and one in Minneapolis. It 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: 2. How much would the company's net operating income increase if Minneapolis increased its sales by $86,250 per year? Assume no change in cost behavior patterns