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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 $ 495,000 100.00% 247,500 50.00% 247,500 50.00% 138,600 28.00% 108,900 22.00% 69,300 14.00% $ 39,600 8.00% Office Chicago Minneapolis $ 165,000 100.00% $ 330,000 100.00% 49,500 30.00% 198,000 60.00% 115,500 70.00% 132,000 40.00% 85,800 52.00% 52,800 16.00% $ 29,700 18.00% $ 79,200 24.00% 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $82,500 per year? Assume no change in cost behavior patterns. Net operating income increase
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