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HW 6 i 6 ! Part 2 of 3 1.5 points Saved Required information [The following information applies to the questions displayed below.] Raner, Harris
HW 6 i 6 ! Part 2 of 3 1.5 points Saved Required information [The following information applies to the questions displayed below.] Raner, Harris and 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: Skipped Office Total Company Chicago Minneapolis Sales $ 463,500 Variable expenses 231,750 100.00% 50.00% Contribution margin 231,750 50.00% Traceable fixed expenses 129,780 28.00% $ 154,500 46,350 108,150 80,340 100.00% 30.00% $ 309,000 100.00% 185,400 60.00% 70.00% 123,600 40.00% 52.00% 49,440 16.00% eBook Office segment margin 101,970 22.00% $ 27,810 18.00% $ 74,160 24.00% Common fixed expenses not traceable to offices 64,890 14.00% Print Net operating income $ 37,080 8.00% References 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $77,250 per year? Assume no change in cost behavior patterns. Net operating income increase
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