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 below: Office Chicago Minneapolis Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company 862,500 100.0% $ 172,500 100% $ 690,000 100% 465,750 396,750 193,200 203,550 54.0 % 46.0 % 22.4 % 51,750 20,750 89,700 23.6% $ 31,050 30% 70% 52 % 414,000 276,000 103,500 18% $ 172,500 60 % 40% 15% 25 % 138,000 16.0 % 76 % $65,550