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Required information Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis (LO6-4, LO6-5) [The following information applies to the questions displayed below.) Raner, Harris

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Required information Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis (LO6-4, LO6-5) [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 $ 525,000 100.0% 283,500 54.0% 241,500 46.0% 117,600 22.4% 123,900 23.68 84,000 16.08 $ 39,900 7.6% Office Chicago MinneapoliS $ 105,000 100% $ 420,000 100% 31,500 30% 252,000 60% 73,500 70% 168,000 40% 54,60052% 63,000 15% $ 18,900 188 $ 105,000 25% Exercise 6-16 Part 2 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $52,500 per year? Assume no change in cost behavior patterns. Net operating income increase

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