Raner, Harris & 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:

! Required information [The following information applies to the questions displayed below.] 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: Office Total Company $600,000 Chicago $ 120,000 36,000 84,000 Minneapolis $ 480,000 100 Sales 100.08 1008 Variable expenses Contribution margin Traceable fixed expenses 30% 288,000 324,000 276,000 134,400 54.08 608 40 46.08 70% 192,000 22.4 23.6 62,400 $ 21,600 15% 52% 72,000 $ 120,000 office segment margin 18% 141,600 25% Common fixed expenses not traceable to offices 16.08 96,000 S $ 45,600 7.6% Net operating income 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $60,000 per year? Assume no change in cost behavior patterns. Net operating income increase