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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 systems
! 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: Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income Total Company $ 501,000 100% 250,500 50% 250,500 508 140,280 28% 110,220 22% 70,140 14% $ 40,080 8% Office Chicago Minneapolis $ 175,500 100% $ 325,500 1008 52,650 308 195,300 608 122,850 708 130,200 40% 91,260 528 52,080 168 $ 31,590 18% $ 78,120 248 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $83,500 per year? Assume no change in cost behavior patterns. Net operating income increase
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