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! Required information [The following information applies to the questions displayed below.] Raner, Harris & Chan is a consulting firm that specializes in information
! Required information [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: Office Total Company Chicago Minneapolis Sales Variable expenses Contribution margin $ 525,000 283,500 241,500 100.08 54.0% 46.08 31,500 73,500 Traceable fixed expenses 117,600 22.48 54,600 $ 105,000 100% 30% 70% 52% $ 420,000 100% 252,000 60% 168,000 40% 63,000 15% Office segment margin Common fixed expenses not traceable to offices Net operating income 123,900 84,000 $ 39,900 23.68 16.0% 7.68 $ 18,900 18% $ 105,000 25% 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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