Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics The firm has two officesone 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 companys most recent year is given 2 By how much would the companys net operating income increase if Minneapolis increased its sales by $87,750 per year Assume no change in cost behavior patterns Total Company Office Chicago Minneapolis Sales $ 526,500 100 00 $ 175,500 100 00 $ 351,000 100 00 Variable expenses 263,250 50 00 52,650 30 00 210,600 60 00 Contribution margin 263,250 50 00 122,850 70 00 140,400 40 00 Traceable fixed expenses 147,420 28 00 91,260 52 00 56,160 16 00 Office segment margin 115,830 22 00 $ 31,590 18 00 $ 84,240 24 00 Common fixed expenses not traceable to offices 73,710 14 00 Net operating income $ 42,120 8 00 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 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 ))

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Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone in Chicago

Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two officesone 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 companys most recent year is given:

2. By how much would the companys net operating income increase if Minneapolis increased its sales by $87,750 per year? Assume no change in cost behavior patterns.

	Total Company		Office
	Total Company		Chicago		Minneapolis
Sales	$ 526,500	100.00%	$ 175,500	100.00%	$ 351,000	100.00%
Variable expenses	263,250	50.00%	52,650	30.00%	210,600	60.00%
Contribution margin	263,250	50.00%	122,850	70.00%	140,400	40.00%
Traceable fixed expenses	147,420	28.00%	91,260	52.00%	56,160	16.00%
Office segment margin	115,830	22.00%	$ 31,590	18.00%	$ 84,240	24.00%
Common fixed expenses not traceable to offices	73,710	14.00%
Net operating income	$ 42,120	8.00%

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.

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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.))