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m 0 2 of 3 Required information [The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that

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m 0 2 of 3 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: Book Sales Variable expenses Contribution margin Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 712,500 100.00 384,250 54.00 327.750 46.00 159,600 22.48 168,150 23.60 114,000 16.08 $ 54,150 7.60 Office Chicago Minneapolis $ 142,500 1000 $ 570,000 1008 42,750 300 342,000 608 99,750 700 228,000 404 74,100 528 85,500 150 $ 25,650 188 $ 142,500 250 rences 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $71,250 per year? Assume no change in cost behavior patterns. Net operating income increase

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