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 below:

					Office
	Total Company	Chicago	Minneapolis
Sales	$	712,500	100.0	%	$	142,500	100	%	$	570,000	100	%
Variable expenses		384,750	54.0	%		42,750	30	%		342,000	60	%
Contribution margin		327,750	46.0	%		99,750	70	%		228,000	40	%
Traceable fixed expenses		159,600	22.4	%		74,100	52	%		85,500	15	%
Office segment margin		168,150	23.6	%	$	25,650	18	%	$	142,500	25	%
Common fixed expenses not traceable to offices		114,000	16.0	%
Net operating income	$	54,150	7.6	%

2.By how much would the companys net operating income increase if Minneapolis increased its sales by $71,250 per year? Assume no change in cost behavior patterns.

3.

Refer to the original data. Assume that sales in Chicago increase by $47,500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3))

Segments
Total Company	Chicago	Minneapolis
Amount	%	Amount	%	Amount	%
0	0.0	0	0.0	0	0.0
0	0.0	$0	0.0	$0	0.0
$0	0.0