! 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: Sales Variable expenses Contribution margin. Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income $ Total Company $ 787,500 100.0% $ 157,500 425,250 54.0% 47,250 362,250 46.0% 110,250 176,400 22.4% 81,900 185,850 23.6% $ 28,350 126,000 $ 59,850 16.0% 7.6% Total Company Amount 0 0 0 3. Assume that sales in Chicago increase by $52,500 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 percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) % 0.0 0.0 $ 0.0 Chicago Amount 0 Chicago 0 % office 100% 30% 70% 52% 18% Segments 0.0 0.0 $ Minneapolis $ 630,000 378,000 252,000 94,500 $ 157,500 Amount Minneapolis 0 100% 60% 0 % 40% 15% 25% 0.0 0.0 ! 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: Sales Variable expenses Contribution margin. Traceable fixed expenses office segment margin Common fixed expenses not traceable to offices Net operating income $ Total Company $ 787,500 100.0% $ 157,500 425,250 54.0% 47,250 362,250 46.0% 110,250 176,400 22.4% 81,900 185,850 23.6% $ 28,350 126,000 $ 59,850 16.0% 7.6% Total Company Amount 0 0 0 3. Assume that sales in Chicago increase by $52,500 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 percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) % 0.0 0.0 $ 0.0 Chicago Amount 0 Chicago 0 % office 100% 30% 70% 52% 18% Segments 0.0 0.0 $ Minneapolis $ 630,000 378,000 252,000 94,500 $ 157,500 Amount Minneapolis 0 100% 60% 0 % 40% 15% 25% 0.0 0.0 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $78,750 per year? Assume no change in cost behavior patterns. Net operating income increase