Here is a segmented income statement for Marple Associates, a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices, one in Houston and one in Dallas. The firm classifies the direct costs of its consulting jobs as variable costs that are directly traceable to the segments, and it allocates the common fixed costs to the segments based on their relative sales amounts.
Based on the analysis shown below, Marple Associates is considering closing the Houston office because of its lack of profits
			Total Company
Sales			$750,000	100.0%
Variable Expenses			405,000	54.0%
Contribution Margin			345,000	46.0%
Traceable Fixed Expenses			168,000	22.4%
Office Segment Margin			177,000	23.6%
Common fixed expenses not traceable to individual offices			150,000	20.0%
Net operating income			$27,000	3.6%
Required:
Answer the following questions. Treat the information in each question independently of each of the others. Use the Answer Sheet tab to enter your answers.
3.	By how much would the companys operating income be expected to change next year if the Dallas office increased its revenues by $75,000? (Assume no change in cost behavior patterns.)
		Increase in sales:	$ 75,000