Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis (LO7-4, LO7-5) (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 $ 937,500 100.0% 506,250 54.0% 431,250 46.0% 210,000 22.4% 221,250 23.6% 150,000 16.0% $ 71,250 7.6% Office Chicago Minneapolis $ 187,500 100% $ 750,000 100% 56,250 30% 450,000 60% 131,250 70% 300,000 40% 97,500 52% 112,500 15% $ 33,750 18% $ 187,500 25% Exercise 7-16 Part 2 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $93,750 per year? Assume no change in cost behavior patterns. Net operating income increase Required information Exercise 7-16 Working with a Segmented Income Statement; Break-Even Analysis (LO7-4, LO7-5) (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 $ 937,500 100.0% 506,250 54.0% 431,250 46.0% 210,000 22.4% 221,250 23.6% 150,000 16.0% $ 71,250 7.6% Office Chicago Minneapolis $ 187,500 100% $ 750,000 100% 56,250 30% 450,000 60% 131,250 70% 300,000 40% 97,500 52% 112,500 $ 33,750 18% $ 187,500 25% 15% Exercise 7-16 Part 3 3. Assume that sales in Chicago increase by $62,500 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).) Segments Total Company Chicago Minneapolis Amount % Amount % Amount % 0 0.0 0 0.0 0 0.0 0 0.0 $ 0 0.00 $ 0 0.0 $ 0 0.0