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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
! 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: Office Total Company Sales $ 472,500 Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income $ 37,800 100% 236,250 50% 236,250 50% 132,300 28% 103,950 22% 66,150 14% 8% Chicago $ 157,500 100% 47,250 30% 110,250 70% 81,900 52% Minneapolis $ 315,000 100% 189,000 60% 126,000 40% 50,400 16% $ 28,350 18% $ 75,600 24% 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
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