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Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago and
Raner, Harris and Chan is a consulting firm specializing in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. It 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 below: How much would the company's net operating income increase if Minneapolis increased its sales by $84,750 per year? Assume no ange in cost behavior patterns. 3. Assume sales in Chicago increase by $56,500 next year and sales in Minneapolis and all fixed costs remain unchanged. a. Prepare a new segmented income statement for the company. Note: Round your intermediate calculations and percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3 an other answers to the nearest whole dollar.)
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