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LO ! Required information [The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that specializes in information

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LO ! Required information [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 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 Sales Variable expenses Contribution margin Traceable Fixed expenses office, segnent margin Connon fixed expenses not traceable to offices Net operating income Total Company 588,500 100.00% 254,250 50.00% 254,250 50.00 142,380 28.es 111,670 22.00% Office Chicago Minneapolis $ 169,500 100.00% $ 339,000 100.00% 50,850 30.eex 203,400 60.eex 118,650 70.00% 135,600 40.eex 88,140 52.00% 54.240 16.sex $ 30,510 18.00 $ 81,360 24.00% 71,190 $ 40,680 14.00% 8.00x 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $84,750 per year? Assume no change in cost behavior patterns. Net operating income increase 3. Assume that sales in Chicago increase by $56,500 next year and that sales in Minneapolis remain unchanged, Assume no change in fixed costs a. Prepare a new segmented income statement for the company. (Round your intermediate calculations and percentage answers to 1 decimal place (le. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar)) Total Company Segments Minneapolis Chicago Amount Amount % Amount % 0 0.0 0 0.0 o 0.0 0 0.00 $ 0 00 $ 0 0.0 $ 0 0.0

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