Exercise 6-16 Working with a Segmented Income Statement; Break-ven Analysis LLO6-4, LO6-5 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 ha two offices-one in Chicago and one in Minneapolis. The firm classifles 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 Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income $750,000 100.08 $150,000 1008 $600,000 100% 345,000 56:.01 105,0000 20360,000 508 105,00070 240,000 408 78,000 52% 90,000 15% 177,000 23.69 $ 27,000 188 $150,000 259 168,000 22.4% 120,000 16.09 57,000 7.6% Exercise 6-16 Part 2 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $75,000 per year? Assume no change in cost behavior patterns