please answer 2 and 3
3. Assume that sales in Chicago increase by $51,000 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 (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Segments Total Company Chicago Minneapolis Amount % Amount % Amount % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.0 $ 0 0.0 $ 0 0.0 Check my work 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 segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 459,000 100.00% 229,500 50.00% 229,500 50.00% 128,520 28.00% 100, 980 22.00% Office Chicago Minneapolis $ 153,000 100.00% $ 306, 000 100.00% 45,900 30.00% 183,600 60.00% 107, 100 70.00% 122,400 40.00% 79,560 52.00% 48,960 16.00% $ 27,540 18.00% $ 73,440 24.00% 64, 260 $ 36, 720 14.00% 8.00% 3. Assume that sales in Chicago increase by $51,000 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 (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.)) Segments Total Company Requireu TorildLIVIT (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 segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 459,000 100.00% 229,500 50.00% 229,500 50.00% 128, 520 28.00% 100,980 22.00% office Chicago Minneapolis $ 153,000 100.00% $ 306,000 100.00% 45, 900 30.00% 183,600 60.00% 107, 100 70.00% 122,400 40.00% 79,560 52.00% 48,960 16.00% $ 27,540 18.00% $ 73, 440 24.00% 64, 260 $ 36, 720 14.00% 8.00% 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $76,500 per year? Assume no change in cost behavior patterns Net operating income increase
