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 Total Company Chicago Minneapolis Sales Variable expenses $ 412,500 100.0% $ 82,500 100% $330,000 100% 24,750 30% 198,000 60% 222,750 54.0% Contribution margin Traceable fixed expenses 189,750 46.0% 92,400 22.4% 57,750 70% 132,000 40% 15% 42,900 52% 49,500 Office segment margin 97,350 23.6% $ 14,850 18% $ 82,500 25% Common fixed expenses not traceable to offices 66,000 16.0% Net operating income 31,350 7.6%