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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 for
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 $ 463,500 1ee.ee% 231,750 50.ee% 750 5e.ee% 129,780 28.ee% 101,970 22.ee% 64,892 14.ee% $ 37, ese 8.ee% Office Chicago Minneapolis $ 154,500 180.88% $ 309, eee 182.ee% 46,350 30.00% 185,400 60.ee% 108,15 70.00% 40.ee% 80,340 52.00% 49,440 16.ee% $ 27,810 18.88% $ 74,160 24.ee% 2. By how much would the company's net operating Income Increase if Minneapolis Increased its sales by $77,250 per year? Assume no change in cost behavior patterns. Net operating income increase
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