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! Required information (The following information applies to the questions displayed below.) Raner, Harris and Chan is a consulting firm that specializes in information systems

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! Required information (The following information applies to the questions displayed below.) Raner, Harris and 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 $ 526,500 100.00% 263, 250 50.00% 263, 250 50.00% 147, 420 28.00% 115,830 22.00% Office Chicago Minneapolis $ 175,500 100.00% $ 351,000 100.00% 52,650 30.00% 210,600 60.00% 122,850 70.00% 140,400 40.00% 91,260 52.00% 56,160 16.008 $ 31,590 18.008 $ 84,240 24.00% 73, 710 $ 42,120 14.00% 8.008 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $87,750 per year? Assume no change in cost behavior patterns. Net operating income increase

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