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Please solve 2 and 3, they both use the data from the top portion Required information [The following information applies to the questions displayed below.]
Please solve 2 and 3, they both use the data from the top portion
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: 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $87,750 per year? Assume no change in cost behavior patterns. 3. Assume that sales in Chicago increase by $58,500 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 (i.e. 0.1234 should be entered as 12.3 and other answers to the nearest whole dollar.))Step by Step Solution
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