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:

$\backslash$table$[[$Sales$,$Total Company,Office$],[,,\backslash$bar $($ Minn $),\backslash$bar $($olis$)],[$$$459,000,100\mathrm{.}00\%,$$$153,000,100\mathrm{.}00\%,$$$306,000,100\mathrm{.}00\%],[$Variable expenses,$229,500,50\mathrm{.}00\%,45,900,30\mathrm{.}00\%,183,600,60\mathrm{.}00\%],[$Contribution margin,$229,500,50\mathrm{.}00\%,107,100,70\mathrm{.}00\%,122,400,40\mathrm{.}00\%],[$Traceable fixed expenses,$128,520,28\mathrm{.}00\%,79,560,52\mathrm{.}00\%,48,960,16\mathrm{.}00\%],[$Office segment margin,$100,980,22\mathrm{.}00\%,$$$27,540,18\mathrm{.}00\%,$$$73,440,24\mathrm{.}00\%],[\backslash$table$[[$Common fixed expenses not traceable$],[$to offices$]],64,260,14\mathrm{.}00\%,,,,],[$Net operating income,$$36,720,8\mathrm{.}00\%,,,,]]$

Exercise $6-16$ Part $2($Algo$)$ Working with a Segmented Income Statement; Break$-$Even Analysis $[$LO$6-4,$ LO$6-5]$

$2.$ 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