Required information SB Exercise 6-16 through Exercise 6-17 (Algo) [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 oft segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 458,000 1000 228,600 508 229,400 506 128, 720 28 100,680 220 64, 120 $36,560 88 Office Chicago Minneapolis $ 154,000 1000 $ 304,000 1008 46,200 300 182,400 600 107,800 708 121,600 409 80,000 528 48,640 161 $ 27,720 188 $ 72,960 240 149 Exercise 6-16 Part 2 (Algo) Working with a Segmented Income Statement; Break-Even Analysis (L06-4, LO6-5) 2. By how much would the company's net operating Income increase if Minnedpolis increased its sales by $77,000 per year? Assume no change in cost behavior patterns Not operating income increase SB Exercise 6-16 through Exercise 6-17 (Algo) [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 Comon fixed expenses not traceable to offices Met operating income 600 Total Company $ 458,000 1008 228,600 50 229,400 50 128,720 285 100,680 224 64, 120 $36,560 8% office Chicago Minneapolis $ 154,000 1005 $ 304,000 100% 46,200 300 182,400 107,800 708 121,600 408 80,080 520 48,640 160 $ 27,720 185 $ 72,960 240 Exercise 6-16 Part 2 (Algo) Working with a Segmented Income Statement; Break-Even Analysis (L06-4, LO6-5] 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $77,000 per year? Assume no change in cost behavior patterns Wet operating income increase